Supplier Risk Management -VI

Here is a timely best practice idea: organize a risk management workshop for your supply management staff, and invite some of your key tier-one suppliers to participate. Done well, it can get your supply chain risk assessment process off to a fast and effective start.

The objectives of such a workshop are several-fold:

• Provide a basic framework for understanding, identifying, and managing business risks
• Provide specific processes and tools (e.g. Value Stream Mapping) for identifying and managing supply chain risks
• Provide guidance for evaluating and managing the risk in your supply chain

The participants for such as session typically would include the following:

• Strategic procurement and transportation personnel
• Key internal stakeholders/clients
• Key direct materials suppliers (as part of a “working session” to Value Stream Map their portion of the supply chain)

One U.S.-based manufacturer found that a 6 – 8 hour workshop – organized along these lines - helped establish a good understanding of concepts and techniques, and also jump-started the risk identification process. This initial session was followed-up with individual working sessions at each supplier’s offices, which results in a series of specific action steps for risk mitigation.