Supply chains are full of uncertainty, and this creates risks for your business. Risks need to be identified and prioritized, and then you can decide how to manage them. Risks can be avoided, accepted, transferred, or mitigated. Mitigating a risk will make it less likely to occur, or less damaging if it occurs. Risk mitigation is an ongoing process.
- There's no such thing as a risk-free supply chain.…But the difference between a minor incident…and a major disruption often comes down…to how well-prepared you are.…Let's look at a tool called a risk register…that you can use to identify, mitigate,…and manage the risks in your supply chain.…If you access to the exercise files,…you can download the worksheet for an example.…A risk register is basically a list…of all the things you're uncertain about…and how they could affect your supply chain.…
I use the acronym PREPARE to remember…the seven steps to follow when I create a risk register.…The first step is to capture…all of the risks that are possible.…I like to brainstorm with my team,…and encourage everyone to think broadly…about things that could happen to our supply chain.…Once we have this list, we go back…and think about the results that would come from each risk.…It's common that many of the risks…can lead to the same results,…like shutting down a factory or a store.…
And some risks can have many different results.…
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- Examine the role of returning products in a supply chain.
- Determine how to calculate total costs.
- Explore the role of investing in flexibility when managing a supply chain.
- Discover how to increase visibility with a control tower.
- Identify the role innovation plays in supply chain management.
- Examine how artificial intelligence and machine learning help to monitor supply chain trends.
- Break down the fundamentals of selecting the right technology when implementing a supply chain agenda.
- Determine the best ways to collaborate externally when implementing a supply chain agenda.