Your Quick Guide to Supply Chain Risk Assessment

Imagine you're about to go on a long road trip. Before setting off, you'd likely check your car's tyres, fuel, engine oil, and perhaps even the weather along your route. That's exactly what a supply chain risk assessment is - it's your pre-journey checkup that helps you to identify where your supply chain might be vulnerable, and what you could do if things don't go as planned.

So buckle up, as we venture through 10 innovative and practical solutions to fortify your risk assessment, aiming to put your business in the fast lane to growth.

1. Visualise Your Supply Chain

Like a GPS system, visualising your entire supply chain can help identify the key risk areas. You could use software tools or even a good old whiteboard to draw a value stream map.

2. Building a Portfolio of Suppliers

Having multiple suppliers for your critical items is like having a spare tyre in your trunk. If one blows out, you'll have others to fall back on.

3. Employ Real-Time Monitoring Tools

This is your dashboard - real-time monitoring tools can keep a vigilant eye on your supply chain and detect any irregularities before they escalate.

4. Perform Stress Tests

Much like testing your brakes before a journey, performing stress tests on your supply chain will help identify its weak points and allow you to apply the necessary fixes.

5. Develop Strong Relationships with Suppliers

Maintain a close relationship with your suppliers. This is akin to having a reliable mechanic who gives you honest and quality service.

6. Leverage Artificial Intelligence (AI)

AI and machine learning can predict disruptions much like weather forecasts, helping you to prepare or adjust your route as needed.

7. Implement Regular Audits

Periodic audits can help keep track of your supply chain's health, akin to routine car maintenance checks.

8. Conduct Risk Management Training

Equip your team with the skills to manage potential disruptions - like giving everyone in your car basic lessons on how to change a tyre.

9. Pursue Sustainability

Sourcing sustainably can reduce both environmental risks and potential reputational damage, much like choosing to drive an electric vehicle over a diesel one.

10. Consider Supply Chain Insurance

Lastly, like any good car insurance, supply chain insurance can provide that extra cushion, just in case things don't quite go to plan.

@IMIG UK