Learning Goals
By reading this chapter, you will:
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Learn about the nature of risk in supply chains and where it fits in when conducting sustainable business
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Learn how to manage risk inside your business and your immediate supply chain
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Learn how to manage risk from outside your business, including how to cooperate with others to reduce supply chain risks
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Learn how to reduce the risk to your supply chain of the unexpected beyond your control
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Learn about the important contribution of best practice to reducing supply chain risk
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Notes
- 1.
For example, Research Series, published annually 1988–2008, “Logistic Trends and Strategies” Bundesvereinigung Logistik (BVL) and Berlin Institute of Technology Logistic Department (TU Berlin).
- 2.
Creating Resilient Supply Chains UK Department of Transport and Cranfield University School of Management 2003.
- 3.
For example, the SCOR Model and business standards such as ISO 9000.
- 4.
There are a number of available bestLog case examples.
- 5.
A selection is shown in the “Further Reading” for this chapter.
Bibliography
Reading List and References
Christopher M. (1998): Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service.
George, M.L., McGraw-Hill (2002): Lean Six Sigma. Combining Six Sigma Quality with Lean Speed.
Peck, H. (2003): Creating Resilient Supply Chains: A Practical Guide. Report produced by the Centre for Logistic and Supply Chain Management, Cranfield School of Management, Research Funded by the UK Department of Transport.
Peck, H. (2003): Understanding Supply Chain Risk: A self Assessment Workbook. Prepared by LCP Consulting in conjunction with the Centre for Logistic and Supply Chain Management, Cranfield School of Management, supported by the UK Department of Transport.
Piotrowicz, W. (2008): Designing Closed-loop Supply Chain: Implementation of the WEEE directive in the UK, The European Retail Digest 56:12–15.
Supply Chain Operations Reference – model (SCOR) Supply Chain Council Version 9 http://www.supply-chain.org.
Further Reading
Business Continuity and Supply Chain Management (2008): Chartered Management Institute of Management (2002) followed up by annual surveys, the latest being March 2008 URL: [http://www.managers.org.uk].
Supply Chain Resilience (2003): Final Report produced by the Centre for Logistic and Supply Chain Management, Cranfield School of Management, for the UK Department of Transport.
Supply Chain Vulnerabilit (2002): Final Report produced by the Centre for Logistic and Supply Chain Management, Cranfield School of Management, for the UK Department of Transport.
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Appendix: Example Risk Register in Use by Medium Sized Company Commercial in Confidence. Example and Co Risk Register File Reference: Register 20 Effective Date 1 November 2008
Appendix: Example Risk Register in Use by Medium Sized Company Commercial in Confidence. Example and Co Risk Register File Reference: Register 20 Effective Date 1 November 2008
Serial | Risk | Risk details | Occurrencea | Risk controls | Monitoring, tracking and reporting state | |
|---|---|---|---|---|---|---|
How likely? | What impact? | |||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) |
A.01 | Warehouse and Office Buildings | Building protection Trained staff – by law must have 3 fire wardens, 5 First Aid assistants | 2 | 4 | Insurance Annual Safety Inspection Quarterly Fire practice | Policy renewal: 1 January 2009 1 September 2009* Overdue – chased 151008 OK 010908. Next 011208 |
A.02 | Power failure for more than 1 hour | Lack of power affects IT system and warehouse operations | 1 | 4 | Stand-by generator Emergency plan | Tested monthly OK 31108 Tested quarterly – due 011208 |
Tasks:
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1)
Examine the role of a Risk Register in your chosen company as a means of managing and mitigating risk.
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2)
Discuss the impact of sustainability issues on risk mitigation over the next 10 years.
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3)
Road safety continues to be an issue in Europe. Examine how an SME might embrace a road safety aware culture into more efficient supply chain operations.
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4)
All logistics enterprises depend critically upon information technology, yet many take surprising risks, many of an elementary and avoidable kind. Examine the risks in IT for your chosen organisation and identify possible solutions.
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5)
Cooperation is fundamental if there is to be any worthwhile relationship to reduce risk with a Tier 1 supplier or customer. On the basis of your chosen enterprise, develop a plan to initiate such a dialogue with a notional Tier 1 client. Assess not only the tasks to be done, but include how, and the proposed timetable to achieve success.
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Ewer, G.A. (2010). Outside Your Control and Influence: Managing the Unexpected. In: Sustainable Supply Chain Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-12023-7_6
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