Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

2.4.1 Supply Chain Risk Identification

Intended learning outcomes: Disclose the process for identifying supply chain risks. Present the depiction of the supply chain using the SCOR model. Describe the supply chain portfolio, suitable for risk management. Explain the supply chain risk catalog.



Figure 2.4.1.1 shows the process of identification of supply chain risks.

Fig. 2.4.1.1        Process for identifying supply chain risks.

Experience has shown that only a few supply chains can be investigated. The point of delimiting the investigation is so that efforts are not made in the wrong spot. Delimitation is done, for instance, with the aid of a supply chain portfolio.

A supply chain portfolio is a description of all of a company’s supply chains using criteria such as finished product, customers, and suppliers.

Figure 2.4.1.2 shows a supply chain portfolio that is suitable for SCRM. The two axes are supply chain vulnerability and strategic significance.

Fig. 2.4.1.2        Supply chain portfolio, suitable for risk management.

In view of risk management, supply chain SC1 in Figure 2.4.1.2 will not require attention. Supply chain SC3 will require a lot of attention, as it is assessed to be both very significant and very vulnerable.

The selected supply chains are then depicted using the SCOR model (for a definition, see Section 1.1.5). This creates transparency, as Figure 2.4.1.3 shows in principle.

Fig. 2.4.1.3        Depiction of the supply chain using the SCOR model.

The purpose of the step identification of critical risks and previous measures is to draw up a catalog of supply chain risks.

A supply chain risk catalog is a drawing up of risks relevant to selected supply chains, for example, structured as in Figure 2.4.1.4.

Fig. 2.4.1.4        Supply chain risk catalog.

For putting together the risk catalog, it is advisable to use risk checklists, structured according to SCOR processes and the target areas of the company goals. With systematic use of the lists, risks are less likely to be overlooked.




Course section 2.4: Subsections and their intended learning outcomes

  • 2.4 Supply Chain Risk Management

    Intended learning outcomes: Produce an overview on supply chain risk management. Explain the identification of supply chain risks. Describe the assessment of supply chain risks. Disclose how supply chain risks can be handled.

  • 2.4.1 Supply Chain Risk Identification

    Intended learning outcomes: Disclose the process for identifying supply chain risks. Present the depiction of the supply chain using the SCOR model. Describe the supply chain portfolio, suitable for risk management. Explain the supply chain risk catalog.

  • 2.4.2 Supply Chain Risk Assessment

    Intended learning outcomes: Disclose the process for assessing supply chain risks. Explain FMEA and FTA techniques for assessing the probability of occurrence qualitatively or quantitatively. Describe FMEA and business interruption values techniques for assessing the business impact qualitatively or quantitatively. Present the supply chain risk portfolio.

  • 2.4.3 Supply Chain Risk Handling

    Intended learning outcomes: Disclose the process for handling supply chain risks. Describe possible measures search fields for an example supply chain risk. Disclose how to evaluate the possibilities for action.