Supply chain risk management is the implementation of strategies to manage everyday and exceptional supply risks based on continuous assessment. It is essential in ensuring continuity and reducing vulnerability. Why is it important for your supply chain to be risk free? A risk free supply chain mitigates business risk and reputational issues. It also creates long term business success. In a word, it builds trust in modern supply chains.
There are technology solutions that help build trust and resilience through transparency. They help build rapport and relationship among suppliers and partners by making it easier for trading partners and even workers to engage in conversations. Suppliers need to know that if and when they need to disclose something to you that you may not find as the right choice at first glance, you are going to be with them to work through a resolution to a solution.
Do you have a strategy that manages your supply chain risk effectively? Successfully managing supply chain risks is a very challenging process. Supply chains are filled with human beings; and human beings are imperfect. There are always opportunities for human errors and break downs in systems. There is always a chance for some risks to exist. However, you may mitigate these risks and reduce your exposure.
Mitigating supply chain risks is a collaborative effort. Your dependence on partners and suppliers opens up a whole world of exposure for your business. That’s why you need to choose your suppliers and partners carefully. You need to conduct audit on your suppliers on a regular basis and if necessary to make sure they are committed to risk management. You need to work with your trading partners to make sure they also minimize exposure from the beginning to the end of the supply chain.
Keep in mind that with rapport comes trust and with that trust comes transparency. You need to collaborate with your suppliers and partners to mitigate supply chain risk and achieve business growth.