Exercise 6 : Supply Chain Risk Management

In the organization I am there are currently some steps in place but unfortunately, they are not necessarily adhered to strictly which makes for inconsistencies in the organization Supply Chain process.

Step 1 Business Unit Strategic initiative:The strategic initiative implementation plan by the Business Units would identify what is required to keep the Business Units operationally active without disturbance to current operations. This has to be thorough and in line with that of the whole organization. Each Business Unit has a different Process Mapping process because they deal with different goods/services. If the Strategy is not in line with what Supply envisions, Management will be unlikely to move forward with it without changing it to what they see is best.

Step 2 Profile supply base for inventory items:For some Business Units in the organization, the products are categorized into inventory depending on inventory cycles which rely on how heavily each item is used. The needs for items are assessed on a semi-annual basis in order to ensure they are in the proper category. This will ensure proper strategy is taken in order to have minimum thresholds at proper levels. KPIs can be created based on these numbers, for sales, revenues, and quality moving forward.

Step 3 Assess vulnerability: Identification of associated risk of supply disruption will be setup by the Business Units. The Supply chain risks have to be separated into categories, i.e. External(quality issues arising from QA process implemented), and Internal risk ie. running low on stock for other business units and customers. If its for services, the Business Unit needs to assess what effects poor planning will have on all the upcoming annual projects both for their business unit and for other business Units.

Step 4 Evaluate the