The rapid globalization of supply chains has made them vulnerable to disruptions such as economic unrest, demand fluctuations, or natural or man-made disasters with potentially damaging long- and short-term impacts on the business.
Enterprises need resilient supply chains to minimize the negative impacts of disruptions on revenues, costs and customers. Not surprisingly, effective supply chain risk management is key to building and maintaining resilient supply chains.
A Holistic Approach to Supply Chain Risk Management
- Identifying risks and consequences
- Developing an organizational strategy
- Creating outcome-based plans to manage risk
- Implementing risk mitigation plans
- Measuring impact
GEP's supply chain risk management services enable clients to proactively assess, prioritize, mitigate and manage risk for improved business results. Our supply chain experts help you map your supply networks, identify risks, assess potential impacts and prepare supply chain contingency plans well in advance to mitigate risks and ensure business continuity.
Extensive Risk Management Portfolio
Keeping supply chain optimization at the core, GEP embeds supply chain risk assessment and management into your supply chain strategy. Our focus on supply chain risk spans multiple dimensions, including geopolitical, environmental, industry, reputational, financial and operational.
We further segment these into short-term, medium-term and long-term risks to better prioritize action plans. We use our proprietary Supply Chain Risk Management Model to aggregate risks across the supply chain and catalog mitigation strategies for effectively addressing the identified risks.
The visual output allows organizations to see their risk map and facilitate cross-functional dialogue to mitigate the risks.
Count on GEP
GEP's comprehensive approach toward supply chain risk management ensures that companies implement the right level of structure, rigor and consistency in managing supply chain risk across multiple business units, functions and regions.
Our unique combination of robust processes, big data feeds, augmented artificial intelligence, predictive analytics and reporting frameworks helps enterprises proactively identify and mitigate supply chain risk.
Learn more about GEP's supply chain risk management services. Contact us today.
FAQ
The supply chain risk management process starts with first identifying potential risks across the supply chain and ends with implementing action plans to finally mitigating those risks. In between, the process involves evaluating the probability of risks and their impact through risk analysis, and accordingly formulating targeted supply chain risk mitigation strategies. The process uses a holistic approach, utilizing AI-driven analytics that can consolidate real-time data from both internal and external sources to identify trends and patterns in an organization’s supply chain.
The different types of supply chain risk include common supply chain risks involving operational and production aspects, strategic risks, financial risks, and other risks.
Strategic risks include demand shifts, competitive pressures, and changing customer needs and preferences.
Financial risks include commodity price volatility, inflation, foreign exchange fluctuations and rising transport costs.
Other risks include regulatory and compliance risks, geopolitical instability, economic crises, natural disasters, cyberattacks, as well as public health issues such as pandemics.
Barriers to success of supply chain risk management initiatives include siloed organizational structures that impede collaboration and cross-functional engagement, lack of visibility across complex global supply chain networks, insufficient data and analytical capabilities, reactive organizational culture, and insufficient management commitment.
Staying ahead of supply chain risks first and foremost requires a proactive, preventative risk culture across the enterprise. Driving open communication and accountability across partners, providing risk management training to all stakeholders, and aligning risk strategies to enterprise objectives also play an important role in risk management of supply chains.
In addition, technology-based approaches such as real-time monitoring with the help of control towers, AI-driven predictive analytics for deep insights, and scenario planning are some of the indispensable tools to bolster supply chain risk management.
