Supply Chain Risk Management (SCRM) Explained

Managing supply chain risk is critical for any company. But why, you may ask. What kinds of risks should be managed? Read on and find out everything you need to know about supply chain risk management.

What Is Supply Chain Risk Management (SCRM)?

Supply Chain Risk Management (SCRM) is a systematic approach to identifying and evaluating both everyday and exceptional exposures, risks, and vulnerabilities throughout a company’s supply chain and developing mitigation strategies to overcome those threats and ensure business continuity.

Modern supply chains are frequently complex, with many moving components, and each step of your production process can have an impact on your company’s performance and success.

With so many stages and suppliers, disruptions and vulnerabilities can happen at any time. In order to prevent them and maintain your company’s performance, compliance, and brand image, risks must be assessed, monitored, and controlled. Here’s where supply chain risk management comes into play.

This level of monitoring may appear excessive at first. You might think that your vendors and service providers must have their own risk management programs implemented. And that’s probably true.

However, those risk management policies were created with the goals and needs of those businesses in mind, and they may

Read More: