Supply chain risk management (SCRM) is a process for identifying, assessing, and then mitigating the risks involved in the supply chain.
Suppliers like vendors, service providers, contractors, and systems integrators contribute vital input to each organization. Suppliers, on the opposite hand, can provide an advert risk. The business discipline of supply chain risk management (SCRM) strives to grasp and minimize supplier risk.
The “Known risks” include:
The “Unknown risks” has two components:
An effective Supply Chain Risk Management promotes supply chain flexibility and responsiveness. The more adaptable a supply base, the faster it can respond to changing demand, and hence the smaller the inherent risks.
Do you want to learn how to mitigate supply chain risks? Talk to one of our Supply Chain specialists today!