Supply Chain: Risk Management

The Supply chain professional (SCP) Practises risk assessment

Why is risk assessment an emerging market within the industry and do supply chain professionals have impeccable practices within the organization?

The researcher says, "SCP's best practice for risk assessment could be a set of skills ready for service and financial institutions, even for any organization.

The industries like Automobile OEM, consumer electronics/goods, service industry, etc. have robust supply chain &principle.

The background to this article will develop the risk assessment derivatives with industry and current market requirements.

A supply chain professional (X) explains by way of example:-

an organization expanding its business and now looking for a mobile manufacturing supplier/vendor instead of third-party sourcing; this statement will explain the business critical practice and trying to explain by X:

X will conclude the requirement in terms of market, technical &financial parameters.

X will source out the vendor- global/domestic, certification, balance sheet, location, customer, lead time, etc...

X will connect vendors and exchange the business &tech words.

X will visit the production unit (potential vendor only) and check the RM preparation, lead time, capacity, QC, manpower etc...

X will work on costing, negotiations, and logistics. warehousing, contract, legal, payment.

This process defines X's capability in technical, commercial, negotiation, etc.. which came from X's practice, experience, wisdom &using tools like:

Six Sigma, QC, Software, understanding manufacturing process &nuances, Internal trade agreement, technology in the world, relationship.

Consumer have a mobile phone but getting an understanding about next six months market demand (forecast) and in reverse engineering draw the chain b/w Tier 1/2/3 supplier of the production unit and then supply of FG in global distribution channel.

Would you recommend X for risk assessments in the current scenario?

Emerging demand for supply chain professionals within the industry, says the researcher due to a complex understanding of business, wisdom and dynamic technology. Risk assessment is the emerging marketplace and an essential and important component of business and project delivery.