Supply Chain Risk Management

Supply Chain Risk Management is a critical element of Business Continuity planning

As your business grows and its supply chain becomes more complex and multi-national, it is vital that you keep on top of your risk profile, understand the risks faced across the supply chain, identify the key links in the chain, and the business impact of an incident at one of those key points. It is often the case that one site or supplier is providing product that is the primary revenue earner for a business and therefore an incident at that site, or a key supplier to that site, could cause a major business interruption from an economic standpoint. This doesn’t just relate to your own sites, this can involve direct suppliers and third party suppliers, down the supply chain. These can be critical to your business continuity so need to be evaluated and their risks managed as closely as your own. Suppliers could also expose you to quality issues if they are not managing their quality control, so again it is vital to understand their value in your supply chain and allocate the necessary, and appropriate, resources to ensure they do not cause you an issue.

In-Transit Risks

Another key part of Supply Chain Risk Management is security within the supply chain and considering points at where expensive ingredients/components could be substituted for inferior ones, or malicious tampering could occur. This is particularly important in the food industry where Food Defence (TACCP) and Food Fraud (contamination for economic gain) come into play, and many retailers will audit your plans in this area to ensure you are taking all necessary precautions to avoid supply chain issues. This means assessing in-transit risks through logistics providers, but also warehousing/storage of product post-production and whilst in transit to your customers. A further element of managing transport risks is having contingencies for failures of transporting temperature sensitive products, such as those requiring refrigeration throughout its journey from production to retail.

RQA Group can assist you to:

  • Review existing supply chain risk management documentation and provide a report
  • Carry out independent supply chain risk assessment
    • Identify high level risks at each site, including suppliers/partners
    • Highlight ‘pinch points’
    • Assess current risk mitigation strategy for any critical sites and ensure they are robust and implementable
    • Assess ‘in-transit’ risks (spoilage, accidental/malicious contamination, hijacking/theft)
  • Plan and prioritise risk improvement strategy across supply chain
  • Assist in updating supply chain risk management plans to reflect findings
On-going Supply Chain Risk Management Support
  • If review has already been done and risks understood, then provide on-going auditing and reporting support for supply chain risks
  • Periodic reviews to be carried out to ensure situation hasn’t changed due to new suppliers or changes to manufacturing locations or processes
  • Assessing new facilities or suppliers as they are added to the supply chain to understand their impact on the overall risk profile
  • Supply Chain crisis simulation exercises
Supply Chain Risk Management and understanding your risk profile