How secure is your supply chain?

Supply chain security refers to the measures taken to ensure the safety and integrity of goods and products as they move through the supply chain, from production to consumption. It involves protecting against theft, tampering, contamination, and other risks that could compromise the quality and safety of the products. The addition of ‘….and other risks….’ added to the end of this definition possibly masks the nature of the more critical risks arising in supply chains in the global economy.

A routine Supply Chain review often focuses on the quality performance of a supply chain. These reviews normally and quite rightly consider:

• Mapping out your current supply chain process.

• Identify key performance indicators (KPIs) to measure the effectiveness of your supply chain.

• Collecting data on the KPIs and analyse them to identify areas for improvement.

• Develop a plan to address the identified issues and implement necessary changes.

• Monitor and evaluate the impact of the changes on your supply chain performance.

However, how often do we actively consider and review our Supply Chain Risks? In today’s Global Market environment supply chains spread around the world and with that comes inherent risks. There are several risks associated with a global supply chain, including transportation disruptions, political instability, natural disasters, currency fluctuations, and supplier bankruptcy. These risks can result in delays, increased costs, and reduced supply chain efficiency, potentially leading to negative impacts on business operations and customer satisfaction. Taking each one of these risks in turn and exploring the potential effects, management and mitigation would be a good start point for any business to base a Risk Management workshop.

All too often Risk Registers are a list of recognised risks with little if any effective review taking place after initial completion. Even if no risk register is in place this does not negate the need to address and review specific risks relating to critical business areas such as supply chains.

Once you have decided to conduct a proactive supply chain security risk review, the questions to ask yourself are:

• How well do we understand our direct supply chain relating to the risks?

• How well do we understand our suppliers supply chain relating to the risks?

• How and we mitigate against the threats presented by the risks?

• How often should we repeat this exercise?

At Ceterus Consultants we deliver consultancy in Business Management, Quality Assurance and Export Controls. Our services and rates are tailored to customers requirements.