Last updated on August 29th, 2022 at 10:38 am
Become A Pro By Managing Uncertainties In A Supply Chain
Supply chain risk management is a critical aspect of any business. It helps minimize disruptions’ impact and improve the supply chain network’s overall efficiency. However, some companies are still reluctant to use supply chain risk management techniques and instead rely on ad hoc responses or reactionary measures when there is an issue.
How do deal with uncertainties in a supply chain?
Supply chain managers can use several techniques to deal with uncertainties in a supply chain. These techniques are:
- Manage the risk: Supply chain managers can take steps to manage the risk arising from an uncertain event, such as by increasing inventory levels or by changing suppliers if the existing one fails to meet quality standards.
- Mitigate the risk: In a few cases, it may be possible for a supplier to mitigate risks that otherwise would have led to a disruption in operations during an emergency or natural disaster.
- Transferring risk: If you cannot prevent certain risks from occurring but are willing and able to assume them yourself instead of passing them along through insurance coverage (e.g., weather-related incidents). Therefore, consider transferring these risks onto yourself instead of trying insuring against them directly through another service provider like an insurance company (unless this makes sense given other factors involved).
Types of risks in the supply chain
- Financial risks are the most obvious and affect the supply chain’s ability to generate revenue. For example, there will be no revenue if you can’t sell a product because it isn’t available in stores.
- Supply chain risks include production delays or quality issues that prevent you from fulfilling orders on time. They also have physical damage caused by external forces during shipment (e.g., bad weather).
- Operational risks are more subtle than financial or supply chain risks and can affect your company’s ability to perform its functions properly—however indirectly this may seem at first glance. For example, poor communication between departments within your organization could lead to duplicate purchases of materials needed for production.
The future of supply chain management is likely to be driven by uncertainty and will require companies to develop new strategies for dealing with it. Fortunately, many tools are also available to help you manage them effectively.
In conclusion, we can say that the future of the supply chain is bright. With the help of technology and proper planning by companies, it’s easy to avoid any risk and ensure smooth functioning at all times.
Discover a supply chain management career with Imarticus Learning
Students interested in the SCM course can get the most recent information by completing the supply chain certification course.
Course Benefits For Learners
- To provide students a complete understanding of the sector and position them for a prosperous future as certified Supply Chain analysts, we include them in significant technologies and initiatives, including six real-world projects.
- Students may prepare for highly sought-after occupations like demand planner or data scientist, which are in high demand among firms today, by completing supply chain analytics courses!
- Aspirants will learn to become data-centric and improve Supply Chain decision-making using the Python programming language.
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