Supply Chain Risk Management in Procurement and Logistics
Supply Chain Risk Management in Procurement and Logistics
Report by iMBA 2015 students:
Content
1.Introduction and Summary………………………………………………………………….. 3
2. Types of the risks ………………………………………………………………….…………… 3
2.1 Delay of delivery ……………………………………………………………………. 3
2.2 Force Majeure ……………………………………………………………………….. 4
2.3 Procurement risk ……………………………………………………………………. 5
2.4 Receivables risk ……………………………………………………………………... 5
2.5 Inventory risk …………………………………………………………………………. 6
2.6 Capacity risk ……………………………………………………………………………. 6
2.7 System risk………………………………………………………………………………. 7
2.8 Forecast risk ……………………………………………………………………………. 7
2.9 Intellectual property risk ………………………………………………..………. 8
3. Solution …………………………………………………………………………………….………… 8
3.1 Setting up scenarios ……………………………………………………………….. 8
3.2 Hedging risks by storing up back-up inventories ……………………. 9
Conclusion ……………………………………………………………………………………………….. 10
Bibliography ……………………………………………………………………………………………….. 10
1. Introduction and Summary
The following Report presents a comprehensive practice-oriented framework of risk management in supply chain. As a starting point of our analysis we took an article titled “Avoiding supply chain breakdown” by Sunil Chopra and ManMohan S. Sodhi published in the MIT Sloan Management Review in 2004. The framework covers everything from risk analysis to the selection of the risk mitigation strategy.
The importance of the risk management of supply chain can be explained by one example: one man cannot be alive if there is no blood flowing through his vessels, even though he may have all the organs. Supply chain is like the blood flow of the body of business activities, once it shuts down, the good from the suppliers won’t be delivered to the customers in a timely fashion or it will take much more time to arrive.
The type of risks which may cause the breakdown of supply chain could differ from case to case, but it still can be concluded as we have already done in the next few
Report by iMBA 2015 students:
Content
1.Introduction and Summary………………………………………………………………….. 3
2. Types of the risks ………………………………………………………………….…………… 3
2.1 Delay of delivery ……………………………………………………………………. 3
2.2 Force Majeure ……………………………………………………………………….. 4
2.3 Procurement risk ……………………………………………………………………. 5
2.4 Receivables risk ……………………………………………………………………... 5
2.5 Inventory risk …………………………………………………………………………. 6
2.6 Capacity risk ……………………………………………………………………………. 6
2.7 System risk………………………………………………………………………………. 7
2.8 Forecast risk ……………………………………………………………………………. 7
2.9 Intellectual property risk ………………………………………………..………. 8
3. Solution …………………………………………………………………………………….………… 8
3.1 Setting up scenarios ……………………………………………………………….. 8
3.2 Hedging risks by storing up back-up inventories ……………………. 9
Conclusion ……………………………………………………………………………………………….. 10
Bibliography ……………………………………………………………………………………………….. 10
1. Introduction and Summary
The following Report presents a comprehensive practice-oriented framework of risk management in supply chain. As a starting point of our analysis we took an article titled “Avoiding supply chain breakdown” by Sunil Chopra and ManMohan S. Sodhi published in the MIT Sloan Management Review in 2004. The framework covers everything from risk analysis to the selection of the risk mitigation strategy.
The importance of the risk management of supply chain can be explained by one example: one man cannot be alive if there is no blood flowing through his vessels, even though he may have all the organs. Supply chain is like the blood flow of the body of business activities, once it shuts down, the good from the suppliers won’t be delivered to the customers in a timely fashion or it will take much more time to arrive.
The type of risks which may cause the breakdown of supply chain could differ from case to case, but it still can be concluded as we have already done in the next few
Bibliography: Chopra S., ManMohan S.S. (2004): Avoiding supply chain breakdown. In: The MIT Sloan Management Review, p. 52-62