When it comes to manufacturing and retail the thing that keeps everything going is the Supply Chain. Because without it we would have no inventory, no products for sale, and in return, that means we would have no revenue as well. To be honest, all logistics companies in Middle East will agree that there will always be some risks. And that is why good supply chain risk management is important. So here is our advice on supply chain risk management: 4 strategies for success you should know.
What are some of the supply chain risks?
Supply chain risk management is the process that allows businesses to take strategic steps in order to minimalize risks on their end of the supply chain. Of course, even if every logistics company in Dammam does its best if you don’t know what the risks are, you won’t know what to do. There are:
- External risks
- Internal risks
External supply chain risks
These are the global risks, that are not in any way in your control. This also means they are not easy to predict and will require time and money to solve. Some of the most common external risks are:
- Demand Risks
- Supply Risks
- Environmental Risks
- Business Risks
Internal supply chain risks
Now, this is something we can influence. Internal risks are something that we can keep an eye on and monitor by using assessment software, robust analytics timetables, and other types of programs. All logistics companies in Riyadh have their own way of tracking and analyzing this data. Some of the often-seen internal risks are:
- Manufacturing Risks
- Business Risks
- Planning and Control Risks
- Mitigation and Contingency Risks
Supply chain risk management strategies
Of course, there are certain measures you can take in order to prevent larger risks and other types of unwanted things affecting your business. And we are not only talking about the cargo transport company. This is what every company should know.
Leverage the PPRR risk management model – This is a famous global strategy. It is so popular in fact that it is used by, many businesses worldwide. It is made out of taking measures, developing a plan in case of emergencies, the plan execution, and recovering things into working order as fast as possible.
Improve your cyber supply chain management – Many bunnies are exposed to online threats, such as malware, ransomware, phishing, and hacking. In order to prevent that there are steps you should take in order to improve your cyber management.
Improve supply chain visibility – Find ways that will allow you to see your shipments and items clearly during transportation. Especially if you can find ways to see them in real time.
Implement a logistics contingency plan – This is quite similar to the emergency response plan. Sometimes it is even better to have more than just one plan, that will help you pass many challenges that come with unforeseen risks. This way your supply chain risk management will be better.