supply chain management solutions provider Kinaxis Corp. “The odds of you predicting one of these issues and it coming to pass are very remote. On the other hand, the chronic, day-to-day risks like intellectual property protection, quality control and rising prices, are more predictable and more manageable. Customers, supply…that’s where you can make a lot of difference.”

Kinaxis, Infor and Datacraft all offer solutions that provide manufacturers with visibility into what is happening in their supply chains and the ability to collaborate more intimately with trading partners, something they universally agree is key to any mitigation strategy.

Risk management

According to Robert J. Schneider, managing principal, Risk Management, International Organization for Standardization (ISO), in Geneva, Switzerland, risk managers should work with senior management to embed risk management practices into all mission-critical points along the supply chain. The process should be a continuous engagement with the supply chain process for ongoing assessment and reassessment of the constantly changing supply chain environment.

Schneider identifies three key objectives of an effective supply chain risk management strategy:
• Identifying and prioritizing critical business elements
• Mapping the entire supply chain to show interdependencies
• Identifying potential failure points along the supply chain.

“The ultimate goal of an effective and comprehensive SCR management strategy,” says Schneider, “is to embed risk awareness into all the core elements of the organization, from the C-suite through supervisors and department heads across the various supply chain functions.”

Adds Kinder, “You need to formalize the process of identifying the risks and building them into your plan. Build risk assessment into your day-to-day operations. Build it into the day-to-day process and make it part of everyday life.”

Kinder suggests four best practices for managing supply chain risk:
• Make every employee a Risk Manager. Leading companies in every industry are implementing solutions that empower their executives, managers and staff to proactively manage risk and stay alert to opportunities.
• Monitor and communicate corporate performance in real time. Enterprises must be equipped to quickly detect, notify and assign exceptions.
• Provide a shared foundation that allows all stakeholders to collaborate to resolve risks.
• Proactively measure performance and mitigate risk through continuous business process optimization.

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