Supply amplified disruptive potential of risks that are

Supply Chain Risks are on potential increase so
is their impact on market and business performance. Market Research is in
support of fact about lot of disruptions which global supply chain is experiencing,
and the results cannot be ignored with risks increasing day by day. With
increase in complexity of supply chain, our never-ending push to enhance
efficiency and following trends like lean manufacturing, just-in-time inventory
have yielded great results but have introduced new kinds of supply chain risk
as well. Potential Customers expect business to deliver continuous supply of
products making supply chain responsive, responsible and competitive. In this
era of competitiveness, how can organization manage its risk exposure and
protects brand value?Risks are evolving continuously and can take
unexpected path also to enter domain. A more holistic approach is required to
cater all risks and need to address all distinct categories of risks. Broadly
there are four categories of risk.Agile and Responsiveness in supply chain is
achieved by reducing slack in Network, reducing margin of error in internal
operations but indeed they also have amplified disruptive potential of risks
that are Operational Risks.
Increased use of outsourcing and supplier consolidation can cause disruptions
that can affect supply chain of company. Risks associated with upstream and
downstream partners like quality issues, labour disruptions lead to Extended value chain risks. The rise of
globalization around globe has provided ease of availability of cheap materials
and workforce and open vast market. Broad External forces like political
turmoil, piracy, regional economic crises amplify disruptions that affects
functioning of company are Macro
Environmental Risk. Supply chain of today is accelerated by numerous
supporting functions like IT, Finance. Breach in any of these functions impacts
directly customer services. Application of GST in country changed complete
scenario of Supply Chain such associated risks are Functional Risk.Managing Supply chain is not ensuring right product at right place at
right time nowadays. All these risks associated factors should be considered
while making all decisions related to supply chain. Company which evaluates all
risks creates better opportunities in this competitive market and can create
superior brand value, regulatory compliance, cost management and asset
efficiency.Scalability and scope of Supply chain is
increasing day by day and it is no way for company to predict about possible
risks associated. How can company proactively addresses all vulnerabilities to
supply chain that expose the business to risk? 
A resilient Supply Chain can prepare companies for all types of risks.
To build resilience, organizations needs to understand all essential components
and required trade-offs. Resilient Supply Chain is characterized by four
pillars supported by clearly defined governance structures and key enablers. v  VISIBILITY – All patterns and events that are happening in
supply chain can be tracked and monitored as they happen or before they happen.
This capability enables organization to address supply chain issues before they
become problemsv  FLEXIBILITY – It is adapting quickly in response to sudden
shifts or problems without significantly increasing any operational costs.
Organization has capability to sidestep all potential problems and can tackle
all critical effects that can arise from disruptionsv  COLLABORATIONS – ability to work collectively with supply chain
partners with trust based partnerships, avoiding disruptions, achieving common
goals through win-win relationship for both.v  CONTROL- having good control and monitoring mechanisms
build through robust policies to ensure all activities and processes are running
smoothly with proper procedures being followed.  

Flexibility in supply chain can minimize disruptions like
having alternate modes of transportation or distribution points. Similarly, we can’t
say machines will not undergo breakdowns but having Flexible Manufacturing System a quick response can be generated to
meet production demand through its ability produce different parts. Increasing Visibility, we can anticipate over
supplier’s issues like financial condition of supplier hence we can protect and
minimize damages that can be caused. We can penetrate more into standards and
processes of suppliers to know more about quality specifications used by them
to receive better standard materials. Along with close Collaborative efforts would be required on both ends to improve all
aspects of operations and remain competitive in this industry. These all can be
well supported by building Control
mechanisms that ensure smooth functioning of company.

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Leaders follow a risk intelligent approach that
incorporates a greater outlook on risk and integrates awareness regarding it to
make a strategic decision. Capable processes, trained people and proper systems
provides a common risk infrastructure to act on such intelligence in a
coordinated and timely manner. A consistent risk Process is used across the
entire organization can manage all risks classes in very efficient and
effective manner. An enterprise not only focuses on risk avoidance but also on
risk taking to create value. By implementing an effective risk management
program, a company can transform it into a Risk Intelligent Organization


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