How Does Your Business Manage Risk
Developing a risk mitigation plan is essential to efficient supply chain management. Waste in the supply chain translates to higher costs and decreased revenue, as well as negative customer service experiences.
The first step is identifying risks in your supply chain. Procurement, delays, transportation, inventory, and many other forms of risk need to be considered. How likely are these to occur and what is their potential impact on the organization? All of these factors will help you create the most effective risk mitigation plan.
Companies with the most successful mitigation plans assess or manage risks such as fuel prices, logistics congestion and capacity, and catastrophic events.
Finally, it is essential to communicate the risk mitigation plan with staff and make sure they are adequately trained to respond to supply chain disruptions.
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