Supply Risk Management - Important Processes
What is Supply Risk Management?
Anytime a purchase order is placed or contract awarded there will be a certain degree of risk to the buyer. Risk management is the process of identifying potential negative events, assessing the likelihood of their occurrence, heading off these events before they occur or reducing the probability they will occur and making contingency plans to mitigate the consequences if they do occur. Though risk can emanate from many places at the selection stage the focus is on two major risks: financial and operational.
With comprehensive end-to-end supply chain risk management strategies, companies can ensure cost reduction, efficient operation, and superior customer satisfaction while managing internal and external risk factors.
Supply chain risk management (SCRM) is the processes of identifying potential risks involved in supplychain and implementing mitigation strategies to to ensure timely delivery of product and services to customers. Other activities under the ambit of supply chain risk management are quality control, safety measures, reputation management, and business continuation.
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