Get Our Email Newsletter

Supply-Chain Risk Management: What You Need to Know

On the surface, supply-chain risk management has a simple goal: to identify and mitigate risks along the supply chain to ensure maximum security. With a closer look, however, the the elements at play get a little more complex. Where does the supply chain actually begin? What happens when a product has to be returned? Which regulatory and environmental factors must be considered?

[text_ad use_post=’2386′]

LPM Contributing Writer Maurizio Scrofani, CCSP, LPC, poses these questions and considers the complicated processes of the supply chain in a feature article for the October 2018 issue of LPM Online. From the article:

Today’s vulnerabilities are multiplied due to greater geographic distances and the complex processes of the supply chain. Globalization presents unique challenges when applying supply chain risk management methodologies to safeguard the supply chain from emerging threats and vulnerabilities. Disruption can hit the supply chain at any point, from manipulation in raw
material usage, malware and intrusions in digital supply‑chain processes, cargo theft, and crime in warehouses and distribution centers.

At the very broadest level, external supply‑chain risks include:

  • Demand risks caused by unpredictable or misunderstood customer demand.
  • Supply risks caused by any interruptions to the flow of product, whether raw material or parts, within a company’s supply chain.
  • Environmental risks from outside the supply chain, such as economic, social, governmental, and climate factors, including the threat of terrorism, global crisis and recession, and political upheaval.
  • Business risks caused by factors such as a supplier’s financial or management stability, or purchase and sale of supplier companies.
  • Physical plant risks caused by the condition of a supplier’s physical facility and regulatory compliance.
- Digital Partner -

Scrofani goes on to ask the tough questions about the risk management process and shares tips on how to conduct a company-wide risk assessment. Check out the full article, “Into the Rabbit Hole of Supply-Chain Risk,” to go deeper into the tangled layers of supply-chain risk management.

If you’ve missed any of our previous LPM Online editions, go to the Archives. Be sure to become an LPM digital subscriber, so you are the first to know when new issues are available. If you haven’t already, SUBSCRIBE NOW for free. If you would like a free subscription to our award‑winning print magazine, go to LPMsubscription.com.

Loss Prevention Magazine updates delivered to your inbox

Get the free daily newsletter read by thousands of loss prevention professionals, security, and retail management from the store level to the c-suite.

What's New

Digital Partners

Become a Digital Partner

Violence in the Workplace

Download this 34-page special report from Loss Prevention Magazine about types and frequency of violent incidents, impacts on employees and customers, effectiveness of tools and training, and much more.

Webinars

View All | Sponsor a Webinar

Whitepapers

View All | Submit a Whitepaper

LP Solutions

View All | Submit Your Content

Loss Prevention Media Logo

Stay up-to-date with our free email newsletter

The trusted newsletter for loss prevention professionals, security and retail management. Get the latest news, best practices, technology updates, management tips, career opportunities and more.

No, thank you.

View our privacy policy.