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).
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.
- Ash clouds
- Agricultural diseases
- Pandemic influenza
- Extreme heat
- Ice storms
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