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“An effective supply chain security risk management programme enhances organisational resiliency and protects shareholder value.”

supply chain security risk management
Where do the risks lie?

Supply chains risks should be considered across the following areas:

Operations, the production environment and processes to ensure goods are produced of a sufficient quality, volume and integrity to be economical.

Supply & Distribution, the logistical activities that ensure goods move through the physical supply chain to reach the end users.

demand Demand Management, the agility and scalability of both operations and supply activities to meet demand surges without undermining the supply chain architecture.

Knowing the construct of your supply chain, enables you to gain a view of your security risk exposure.

Supply Chain Security Risk Management

Security can be introduced across all of these areas, in the form of traditional physical security controls, cyber security, third party vendor and third party logistics security management, and the alignment/ compliance with international standards and regulations such as ISO28000/ 14001/ 45001/ 27001, Authorised Economic Operator (AEO-S), Customs Trade Partnership Against Terrorism (CTPAT) etc.

Your contact for Supply Chain Security advice:

Dan Breger
Principal Consultant
Mobile: +44 (0) 797 167 8039
dan.breger@hvassallo.com

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However, the starting point for introducing or enhancing a robust Supply Chain Security Risk Management environment must be a coordinated strategy aligned with the core business functions involved in the supply chain mechanics. This will allow you to:

  • Know your horizontal supply chain partners, and communicate and enforce security standards, and mechanisms for changing suppliers without forfeiting security oversight
  • Ensure, as a result of vertical integration, that consistent security considerations and controls are implemented
  • Embed reciprocal arrangements across the supply chain for risk exposure reporting and the ability to identify concentration risk in your supply chain
  • Gain access (authority), capacity and capability to audit elements of the supply chain

It also provides an opportunity to align and support other supply chain risk functions such as social and environmental affairs, M&A due diligence, I.T., procurement, marketing, brand and reputation, business continuity and loss prevention.

The screenshot to the right provides a snapshot of our Supply Chain Security Risk Exposure Dashboard, which consolidates the various risk factors, providing key stakeholders a dynamic view of risk exposure.

Why now?

The events of 2020 have seen a global disruption in supply chain capability. Organisations are starting to strategise around reconfiguring their supply chain to ease the pressure associated with globally distributed networks, and the reduction in bricks and mortar commerce, alongside initiatives such as local micro-factories supporting agile production.

security dashboard

Further with the challenges introduced by the a changing trade & export landscape in 2021, this narrative is going to continue for the foreseeable future, and the risk exposure will exponentially grow with this complexity.