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Supply chain risk management strategy

Take a look at ten strategies that will help you with your supply chain risk management.

Top 10 supply chain risk management strategies

Manging risk in the supply chain requires detailed pre-risk planning. Every organisation will have different potential risks, however, take a look at ten strategies that will help you with your supply chain risks management.

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1. Supplier assessment questionnaire:

A supplier assessment questionnaire can help your organisation to identify any weaknesses and potential risks relating to your suppliers.

2. Auditing suppliers:

Regularly auditing your suppliers is key to managing risk in your supply chain. For high-risk suppliers, a professional on-site audit will be essential, in helping you to identify any risks.

3. Get news alerts:

News alerts helps you to stay on top of any environmental or political issues relating to your supplier’s home country. If there is a sudden environmental risk such as an earthquake or political unrest, it will help you to manage the effect this may have on your organisation.

4. Check financial reports and undertake financial checks:

Regularly undertake financial checks and reports for the whole supply chain to help you identify any potential risks.

5. Work with modern slavery organisations such as Walk Free and Anti-slavery international, check the organisations modern slavery statement:

Customers want assurances that your supply chain is free from modern slavery issues and as a buyer, you need to make sure that the whole supply chain is complying. By working with organisations, it will enable you to correctly implement a modern slavery statement, that the whole supply chain can adhere to.

6. Obtain certificates of conformance and compliance and check them with the applicable authorities:

A certificate of conformity is issued by an authorised party, such as a manufacturer of independent laboratory and checks to make sure the product meets the required standards of specs. It can be requested by the buyer to make sure it meets safety and technical requirements.

7. Know your organisations risk appetite:

Risk appetite is the amount and type of risk that you’re willing to take to meet your organisations objectives. Many organisations will have different levels of appetite depending on sector and these may change over time.

8. Build a risk register so everyone in the organisation knows the course of action that should be taken:

A risk register is a risk management document, that acts a key database of risks identified within the supply chain. It includes regulatory compliance, nature of risk, an owner and what measures are in place.

9. Improve your cyber security:

Digital technologies can play a huge role in the supply chain that help operations become more efficient, however, there are risks associated with the technology. Keep in mind that technology can make your organisation vulnerable due to hacking, malware, and cyber threats. Implementing backup controls to help safeguard your data and regularly update anti-virus software.

10. Conduct risk awareness training:

Building a culture of risk awareness is a key strategy that can help you manage supply chain risks. Conduct regular risk awareness training for the entire workforce on supply chain risks, best practices and how to identify and spot risks.

 

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