Risks Of The Supply Chain Strategy

Today’s global supply chain has been shaped by the past decades of focus and strategies based on achieving the lowest operational costs coupled with a push towards market expansion and supplier outsourcing. The expansion of global supply chains combined with the increasing number of joined connections to external business partners has significantly raised the possibility for supply chain disruptions (Poirier, Quinn, & Swink, 2010). In today’s global business environment, the importance of risk management continues to grow daily.

Research the responsiveness issue in supply chains (push, pull, and postponement strategies). Define each strategy and discuss the major differences between them. Name some companies that use each strategy. Do not just use the textbook for your answers.

Any actions, however small, which decision-makers or managers decide to try encourage, promote or support safety within the place of work may have an optimistic knock-on impact on all personnel. (Like a corollary, positive verbal communication may have little impact if it's not supported by similarly positive actions.) The very best actions which senior staff people may take are individuals which overtly reward safety-oriented behavior in other people. This, above all else, will be sending a note of the significance of safety towards the organisation.

Managing customer and supplier relationships is an important issue of handle supply chains. The concept of closely aligned relationship has been considered the basic needs of supply chain management. However, supply chain relationships, particularly those involve in product flows, reveals that the central of these relationships is inventory movement and storage. Most of the activity involved in managing relationships is based on the purchase, transfer, or management of inventory. Thus, inventory in supply chain plays a critical role because it is a salient focus of supply chains.

Enterprise systems can be helpful to solve diverse business problems and optimize numerous processes in commercial organizations. Though the CIO is interested in different types of these systems being used, particular emphasis is placed on Supply Chain Management (SCM), which can be defined as “the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability” (Baltzan, 2014). In order to profoundly evaluate the impact that these systems can have on different types of organizations, the paper will analyze two case studies, whose objective was to “promote further understanding of this process of adoption and integration of supply chain management

A few decades ago, the true understanding of the impact of supply chain management was alien to many companies (Moore, Baldwin, Camm, & Cook, 2002). As Moore et al (2002) continue to state, few companies within different industries understood the important link between strategic goals and supply management principles. This, in effect, meant that purchasing departments were undervalued, seen more or less as order takers and placers, while enjoying little or no respect from other organizational arms. However, this trend, culture and tradition was to reach an instant demise with the comprehension by many companies of the importance of lean management in reducing waste from processes, effectively achieving competitive advantage

In today’s highly competitive, global and fast pace market there is little room for error even when it comes to unforeseeable events. Companies are subjugated to not only growing the business but also sustaining it. By identifying, prioritizing and assessing the various risks that a company can face, uncertainty is reduced and a company can therefore lessen or control the impact when tragedy does strike. As the speed of businesses continue to increase, the risks and possibility of interruption also increases. Catastrophes and natural disasters can certainly disrupt the logistics of a business and hence when it comes to assessing supply chain disruptive risk, we need to ask the right questions. By asking the right questions we are able to

A supply chain strategy is a plan with goals and objectives. It is about using all of the elements involved in the sourcing and procurement of goods and services to produce better results for the company. Typically, strategy is aimed at achieving objectives such as pushing a new product development faster, improving the use of current technologies, bringing products and services to market faster, minimizing resource investment, and reducing specific costs and response/cycle times. Supply chain strategy is often confused with supply chain management, even though it is a lot broader, which explains why many people traditionally call it “supply strategy”, “operations strategy”, and “logistics strategy”. It defines what processes within the

“Supply chain management includes, but is not limited to, new product development, marketing, operations, distribution, finance, and customer service” (Chopra and Meindl, 2001). The flow of supply chain management can be divided into three main flows; I have outlined it in the diagram below to show how each flow is interconnected to the other.

The issues of Supply chain risk management are derived and structured along three conceptual levels of “philosophy”,” principles” and “processes”.

A second related issue is the extent to which synergy can be released by global

Supply chain risk comes from what you do not understand and underestimate. When you have foresight of what could happen you are able to develop plans to mitigate the effects. What Simchi-Levi, Schmidt and Wei have outlined is a way to have improved foresight. What they have stated is that most supply chains presume that the greatest risk is from whom they spend the most money. The mathematical model that they have developed indicates that this is not always true.

When considering risks in supply chain risk management we can divide it into two types

Due to its global nature and systemic impact on the firm’s financial performance, the supply chain arguably faces more risk than other areas of the company. Risk is a fact of life for any supply chain, whether it’s dealing with quality and safety challenges, supply shortages, legal issues, security problems, regulatory and environmental compliance, weather and natural disasters, or terrorism. There’s always some element of risk. Companies with global supply chains face additional risks, including, but not limited to, longer lead times, supply disruptions caused by global customs, foreign regulations and port congestion, political and/or economic instability in a source country, and changes in economics such as exchange rates. The scope and reach of the supply chain cries out for a formal, documented process to manage risk. But without a crisis to motivate action, risk planning often falls to the bottom of the priority list. Furthermore, the repercussions of supply chain disruptions to the financial health of a company can be far-reaching and devastating. A study by Hendricks and Singhal as cited by ( the Supply Chain Management Faculty at the University of Tennessee, 2014) emphasizes the negative consequences of supply chain disruptions (Production and Operations Management, Vol. 14, No. 1, Spring 2005). The study analyzed over 800 supply chain disruptions that took place between 1989 and 2000. Firms that experienced major supply chain disruptions saw the following

A supply chain (SC) consists of a set of organizations that work together to take in raw materials, convert the raw materials into higher value products, and sell the products to the end customer (Kelly 2005). The management of these flows to generate profit is known as supply chain management (Sodhi and Tang 2012). Supply chain risk management (SCRM) is defined, very broadly, as the identification, analysis and evaluation of events that can have a negative effect on supply chain performance. SCRM also includes the implementation of mitigation strategies through a concerted effort between SC partners to reduce the consequence and/or likelihood of such events (Khan and Burnes 2007). Generally the events of