MANAGING UNCERTAINITY IN SUPPLY CHAIN

• What is a Risk? Exposure to the chance of injury and loss. Hazard or dangerous chance, chance of loss Degree of probability of such loss Supply Chain RisksSupply chain risk can be divided in to three categories 1- Organizational riskOrganizational risk can be found with in one of the participants of the supply chain in focus and can be found with in the production factors like labor strikes, machine failures etc.

incoming delay. inventory & schedules.supply risk Disorder of supply. . B. counterfeiting. terrorism.Operational riskFailure or break down of operation. changes in Technology.Network Riska.Demand riskVariation in demands D. piracy.2. C.Security riskThefts.

competition risk. capital or technology. Supply chain risk management strategies1.AvoidanceExiting a market ( or product ) or delay entering a market ( or product ) .Macro risk.lack of human resource.Environmental risksA.Resource risk.economic shifts. shift in legislation C. B.policy risk. labor costs.3.uncertainty about competitor’s moves and actions D.action & sanction of govt. customs. exchange rates.

Vertical & lateral integration of supply chain and business partners. 4.postponementDelay commitment of resources to maintain utmost Flexibility 3.2. off sharing.Transferring & sharing riskOut sourcing.Hedging 5-control. 6. contracting 7.securityIdentify and protecting against unwanted penetration .assuming risk to gain competitive advantages.speculation.

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