With an increasing number of complex supply chain risks emerging across the globe -potentially costing organisations billions of pounds - the Supply Chain Risk Leadership Council (SCRLC) has published its first ever emerging risks report.
The report, Emerging Risks in the Supply Chain 2013, helps organisations identify the risks that may have a major impact on them. It is designed to encourage planning to improve resilience against risks such as climate change, gender imbalance and population growth.
There have been many recent events, such as the recent Horsemeat scandal in the UK and Superstorm Sandy, which have highlighted the need for more transparency and resilience to be built into supply chains.
Alongside the report, the SCRLC has developed a risk analysis tool, the Supply Chain Risk Maturity Model, which is available for free as part of the SCRLC’s mission to help all companies reduce their overall risk exposure. The Maturity Model offers a quick and easy-to-follow assessment of a Supply Chain Risk Management (SCRM) programme.
The model is made up of categories linked to a company’s ability to effectively handle its supply chain, including leadership, planning, implementation, and evaluation and improvement perspectives. Each of these areas is assessed on a five-stage rating scale (Reactive, Aware, Proactive, Integrated, Resilient) and bespoke advice is given to businesses on this basis.
The Maturity Model has been placed in an easy to use spreadsheet that produces three output charts which highlight the overall capability of an organisation to manage supply chain risks.
Nick Wildgoose, Chairperson of the SCRLC and Global Supply Chain Product Leader for Zurich Insurance Group, said: “The Council is offering these tools to foster improved practices in Supply Chain Risk Management. We hope they will enable organisations across a range of industries to move forward in creating resilient supply chains.
“The SCRLC has in the past published best practice guidelines which many organisations have found useful and are now being considered as the basis of international standards. We would welcome feedback from readers about other emerging supply chain risks that should be highlighted”.
The documents are available at www.scrlc.com and www.supplychainriskinsights.com.
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