Your assessment of risk. The main difference between uncertainty and risk is that risk can be measured. Once measured, decision makers can assess the importance of one risk against another and if necessary, allocate resources to reduce either the likelihood of the event occurring or the consequences if it does occur. The assessment of a risk is influenced by the … Read More
Placing your supply chain risks into categories helps
Next step in managing risks. In addition to identifying supply chain risks within each classification, discussed in my previous blog, you need to broadly categorise them. This provides a view about the amount of analysis required. There are categories of risk between certainty and ignorance: Certainty: in reality, you rarely meet situations of certainty. The closest could be depositing money in … Read More
Manage risk in your supply chains and reduce stress
Your interest in supply chain risks. Managing risk is a continual process of identification, analysis, assessment and implementation. Attached to your organisation’s One Plan should be the risks in achieving the Plan and management’s actions to counter the risks. It is preferable to anticipate potential problems, rather than overcoming disruptions after they have occurred. Supply chains are uncertain (and therefore … Read More
One Plan approach ensures more effective supply chains
Your One Plan. Running around to ‘put out fires’ and reacting positively to challenging events looks good as a ‘can do’ attitude. Unfortunately, it is an ineffective and expensive way to operate; instead, try planning. Planning is based on the ‘one plan’ approach – to be truly effective, your organisation must have only one plan. But, to be successful, all affected … Read More
A future scenario for your supply chains
Forecasting supply chains and logistics businesses. Even in large companies, the person or team who consider future economic and business scenarios and how the enterprise may respond, do not always get it right. The chairman of Origin Energy has admitted that management had not foreseen the extent of the fall of crude oil prices and had been mistaken in its … Read More