Effective Management of Supply Chain Risk

“A supply chain is only as strong as its weakest link.”

With increased outsourcing and globalisation, the risk to businesses of relying on external suppliers is greater than ever. This course will enable delegates to understand that through effective collaboration with their suppliers, those suppliers can add value and be part of any risk management solution, and integral in creating new opportunities for future success through innovation and efficiencies.

This supply chain risks management course will guide delegates through the process of maximising the benefits of outsourcing to specialist / expert suppliers who are able to achieve optimum outcomes and ensuring the impact of potential risks is kept to a minimum.

Suppliers are not exempt from risks, either coming from external or internal factors. This is why it is critical to work with your suppliers, to support them, collaborate with them, view them as strategic partners, to assist them to effectively mitigate, minimise or manage any supply chain risks which arise. 

It’s crucial to identify all potential risks, some of which are created by the buyer due to poor communication with suppliers, others due to external factors affecting all suppliers, and some may be self-made by a supplier. Once a risk has been identified and the buyer is made aware of a potential risk, the contracting parties can then work together to determine the best strategy for mitigating / eliminating that potential risk or minimising the criticality and the impact on the buyers’ business.

This course will give delegates the framework to undertake thorough due diligence to gather that information, either from independent sources or through their tendering process, or their contract express terms. It will provide structure on how to process that information to determine the best approach to adopt taking into consideration their attitude to risk and their overall strategy, and their ‘bigger picture’ objectives in respect of their suppliers.

The expert trainer will provide procedures and best practise evaluation and planning tools to help you either avoid potential risks or minimise the impact when risks do materialise. Learn how to create a culture of pro-active risk management and understand lessons learnt within your own organisation and in your relationship with suppliers.

This course provides insight into the options available from legal recourse to practical remedies. It emphasises the importance of good supplier relationships due to the interdependent nature of the relationship between a buyer and a supplier, and the longer-term perspective. It is in no one’s benefit if a risk materialises for the result to be litigation, where neither party truly wins.

Specifically designed for everyone interacting with suppliers, or supporting colleagues who are the interface with suppliers, either in the scoping of requirements for outsourced goods and services; the negotiation with suppliers; the management of suppliers; or are reliant on the output received from an external supply source.

If a risk is unavoidable and no acceptable remedy is possible, what should the business continuity plan look like? Do you have a disaster recovery plan in place? Does the buyer have the right to terminate the contract, is there an exit strategy / supplier transition plan?

This course focusses on best practice for success but also looks at how to plan and mitigate for the worst. Proactive management of supply chain risk means being prewarned and therefore pre-armed.