Falling demand, tight credit, and unprecedented economic challenges are forcing businesses to look for tools and means of reducing cost, increasing productivity, maintain-even increase customer base, avoiding costly initiatives, and improve quality. The essence of this initiative, Supply Chain Institute, is to address these problems by providing analytics, modeling capability, and execution methods to assist with the resolving of the real life business problems.
For any business, supply and demand chain disruption represent at least, an immediate financial risk, that no business can afford to let it to happen. At worst, any disruption will have long term ramification on the future revenue. The fact of the matter is that disruption doesn’t happen out of a sudden. It is preceded by its precursor signals. These signals either are not detected or are ignored. So a proper proactive risk management program should be designed such that it encompasses and incorporates all active networks of a supply and demand chain. This way, any variance is detected at early stage on the upstream or downstream networks.
In our approach we investigate financial risk, environmental risk, and risk to customers. In a quantitative approach, the bottom line is profit against loss. In methodology we practice, the focus is on identification, evaluation, analysis and optimal management. We believe that any business action or decision generates risk. Consequently we have to learn to live with it. The way that civilizations have rid out the natural disasters exemplifies our recommended approach; risk tolerance. An organization can best survive any interruption or even disaster if risk tolerance is embedded in its infrastructure. This is the basic philosophy of supply chain Institute in dealing with risk.
In near future, we will introduce curriculum of risk management in the form of workshop tailored for industrial applications.
Curriculum In Risk
Risk Management Across Global Supply Chain
Application in Procurement
In Today’s competitive market, Risk Management represents a new shift in businesses paradigm. As the economies become more service driven and globally oriented, businesses cannot afford to let new, unforeseen areas of risk remain unidentified and unattended. Currency fluctuations, human resources in foreign countries, evaporating distribution channels, corporate governance, unprecedented dependence on technology, flow of raw material to manufacturing sites, manufacturing process and the logistics of delivery of finished goods are just a few of the new risks businesses must assess and manage.