Managing Risks in the Supply Chain

Introduction:

To achieve growth and maintain a competitive edge, organizations must efficiently manage their supply chains to balance low costs with high service levels. However, international trade is fraught with high levels of risk and uncertainty, which can lead to a risk spiral, resulting in increased costs and diminished service levels. While risks are inherent in every supply chain, proactive measures can be taken to minimize their likelihood and impact.

Organizations must therefore develop strategies to manage risks, uncertainties, and variability without escalating costs or compromising service quality.

Objectives:

By the end of the Managing Risks in the Supply Chain course, participants will be able to:

• Understand various supply chain activities.
• Assess, identify, and evaluate supply chain risks.
• Recognize key factors in risk reduction.
• Apply risk management approaches and techniques.
• Implement organizational changes along the supply chain.
• Analyze existing supply chains for risks and vulnerabilities.
• Evaluate risk and control measures.
• Utilize risk management strategies and tools.
• Promote continuous improvement in risk management practices.

Training Methodology:

• Tabletop exercises
• Situational training
• Scientific research
• Term papers
• Participatory forum
• Case study analysis
• Threat assessment

Course Outline:

Unit 1: The Basics of Supply Chain Management

• Definitions of supply chains
• The 8 rules of the supply chain
• Customer, competitive strategy, and demand
• Supply chain systems and models
• International supply chain
• Incoterms 3000 and risk protection
• NSC risk issues in the supply chain

Unit 2: Determining Persistent Supply Chain Risks

• Porter’s internal supply chain risk
• PESTLE scope of risk
• Stockpiling risk
• Financial scope of risk
• Disruption risk type
• Security risk type
• Poorly managed relationship risk
• Sourcing risk type
• Various logistic risks

Unit 3: Mastering the Risk Spiral

• Effects and results
• Identifying risk causes

Unit 4: Managing Risk in Supply Chains

• Enhancing visibility
• Decreasing variability
• Speed control
• Building assurance
• Incorporating agility and synchronicity
• Implementing supplier relationship management

Unit 5: Employing Risk Management Techniques and Instruments

• Risk management options
• Risk management strategies matrix
• Risk management guidelines
• RAG (Red, Amber, Green) evaluation
• Impact of procurement & supply chain on organizational strategy
• Risk evaluation and ranking
• Risk management culture and contingency planning
• Supply chain resilience

Unit 6: Rethinking the Supply Chain

• Future predictions and trends
• Agility
• Network design
• Effects of the China supply chain
• Sustainability and “Green” initiatives
• Development of managers and leaders
• End-to-end reengineering for risk reduction
• Organizational development
• Change management models