Author: Eldon Mackley
Boots on the Ground — Routine Supplier Visits
Advancements in communication and logistics have allowed procurement professionals to manage larger and more geographically widespread supplier portfolios. Along with higher travel costs and increased travel risks, this expansion has caused some to overlook the importance of on-site supplier visits. Well established and vetted suppliers are not inclined to intentionally mislead their customers, but it’s human nature to have a bias…
Supply Chain Risk Management
Supply Chain Risk Management is a well established methodology for monitoring and managing supply chain risk. If these systems are all “blinking red” it’s time for action! Supply Chain Risk Management (SCRM) is the process of assessing ordinary and exceptional risks to a supply chain and formulating strategies and tactics for responding to the actualization…
The SCRM Bowtie
A common visualization of a risk management system is a “bowtie” shape. This looks like two opposing funnels with risk factors flowing into one end, a supply disruption in the middle, and consequences flowing out the other end. In this visualization, mitigation efforts on either side of the center are directed toward “narrowing” the funnels…