Managing Supply Chain Risks using SCOR®

As supply chains continue to become more global and complex, the risk of disruption intensifies. Most organisations recognise the increased risk, however, many are ill prepared to handle a disruption. This article examines how SCOR® can be used to assess and manage supply chain risk (SCOR® – Supply Chain Operations Reference Model).

A close up of a risk management flow chart written with red pen on paper.

Why increased focus on supply chain risk management?

Global supply chains have increased supply chain risk significantly and are subjected to natural disasters and man-made disasters including:

Natural disasters – e.g.

  • Earthquakes
  • Tsunami
  • Floods
  • Ash clouds
  • Agricultural diseases
  • Drought
  • Pandemic influenza
  • Extreme heat
  • Hail
  • Hurricanes
  • Landslides
  • Wildfires
  • Ice storms
  • Lightning

Man-made disasters – e.g.

  • Environmental disasters – eg.
    • gas leaks & oil spills
    • global warming
    • mine explosions & arson
  • Train derailments or other transport issues
  • Civil disorder
  • Construction disasters
  • Stock exchange/trading disasters
  • Economic environment (eg. government, downturn, high dollar)
  • Supplier bankruptcy
  • Terrorism, War, Fraud, Theft, Labour Disputes, Cyber attacks