Supply Chain Risk Management

Bol Partner

Constant pressure to improve the efficiency of supply chains, move materials quickly and at low cost has given rise to a stream of new methods and initiatives. However, there is growing realization that they have created inflexibility that increases the supply chain's vulnerability to disruptions. Evidence of major consequences are reported regularly in the news, from recent industrial action in American ports stopping the delivery of Chinese goods to Europe, to environmental disasters such as the 2004 Tsunami. But even a small, unexpected event has the potential to bring everything to a standstill including risks such as late deliveries, price rises, road accidents and traffic congestion. Supply Chain Risk Management introduces this important subject and explains why it is vital for managers to understand it. Using jargon-free, accessible language, it identifies both the possible effects that risks can cause and how to plan for them. Starting with a definition of risk and supply chain management, it explains the current trends affecting the supply chain and provides detailed guidance on how to identify and analyse risks. It develops the principles involved, describing the various approaches to take and the steps needed to implement it. There is advice on how to create a resilient supply chain and, in the worst case scenario, how to plan for and respond to an extreme risk. Interspersed with real-life examples of how risks in the supply chain have affected organizations, readers can learn from the past and take steps to ensure they are not victims of future risk.

Bol

The supply chain management field is one of the fastestgrowing fields in our economy, given the heavygrowth in international trade as a means to accessoutsourced production opportunities to lower costsand the growth in information technology to coordinatesupply chains. However, this opportunity to lowercosts entails significant risks, such as tsunamis, earthquakes,political unrest, and economic turbulence.This book discusses risks in supply chain management,followed by graphic and quantitative tools (riskmatrices, selection methods, risk simulation modelling,linear programming, and business scorecardanalysis) to help manage these risks.