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Understand, protect, optimise: And de-risk your supply chain

In Articles Supply Chain Posted September 25, 2017 at 2:17 pm
By Bernadette Habkouk

de-risk your supply chain

The world of supply chains and logistics is often volatile and turbulent. Keeping everything running smoothly has never been more challenging. Nor has it been more important to de-risk your supply chain

Supply chain risk management is the strategies and activities that reduce a supply chain’s vulnerability to both every day and unexpected risks along the supply chain and ensure its continuity. It is based on a process of continuous risk assessment.  Proactively managing risks is fundamental to success in businesses with both simple and complex supply chains. de-risk your supply chain

The need for constant vigilance and the implementation of proactive measures that ensure a consistent and predictable supply chain with minimal disruption is overlooked surprisingly often. .

I’m regularly involved in discussions that change perceptions of sustainability, processes, long term strategies and impacts due to a lack of supply chain risk management. Implementing supply chain business continuity enables good practice and leads to a positive cycle of behaviours leading to greater resilience. In fact, it is the lack of visibility over length of the supply chain that remains one of the biggest challenges to an organisation’s resilience. An optimised and effective supply chain holds a lot of power in an organisation. Fully understanding, protecting and optimising supply chains has been critical to business success for many organisations.

Some key areas of risks to consider include:

  • Routine supply chain risks – such as unexpected transit delays, changes in customer orders, problems with suppliers
  • Natural or unforeseen disasters – although unpredictable, effective organisations anticipate disruptions and develop contingency plans accordingly
  • Laws and regulations – including the unexpected application of regulations in a particular country or changes to relevant regulations.

As with any aspect of risk, there are four key processes necessary for the effective management of supply chain risks:

  1. Identification – understanding where the risks are
  2. Assessment – deciding on how critical they are to the ongoing operations of the organisation
  3. Treatment – developing strategies to manage the risks, and
  4. Monitoring – allowing organisations to understand changes in their supply chain and anticipate potential issues before they become problems.

I have worked closely with customers to assist in managing risks within their supply chain. Developing strategies around key factors within the supply chain like supplier or order management programs, supply chain visibility, shipping rate strategies and customs due diligence strategies have been very powerful and assisted with risk management.

At Magellan, we have your back on when it comes to your supply chain matters. Get in touch with me for an obligation free discussion on your supply chain and ways you can minimise your exposure to risks on 0423 777 909 or email me at bernadette@maglog.com.au

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