Supply Chain complexity is constantly increasing. As companies globalize and outsource, partners' interdependence deepens and the potential for supply chain failures increases. Such failures may start from what appears to be a minor Event and end up creating severe bottlenecks across the entire Supply Chain network. These bottlenecks manifest themselves in the form of reduced availability, customer dissatisfaction, service disruption, and other risks to the organization.
In this environment, companies need to be faster, more agile, and more creative than ever before, in order to respond to constant changes, the demands of increasingly savvy customers, and their responsibilities to shareholders and regulators.
TradeMerit approach is based on the Enterprise Risk Management (ERM) Framework, and it includes methods and techniques to collect, identify, analyze, control and assess supply chain risk. This framework can be summarized in the following four steps:
- Risk Strategy Setup
Define the risk strategy profile as relates to the corporate strategy, and the stakeholders that are based on past experiences and the estimation of future risks that may occur.
- Risk Collaboration and Monitoring
Create discipline and provides tools to collect all information from different supply chain nodes and provide continuous monitoring of supply chain processes to anticipate disruptions before they occur.
- Risk Notification & Response
This phase includes risk action planning and scheduling in order to react adequately to disruptions. The risks to be monitored will be assigned with the appropriate handling options.
- Risk Analyze and Improve
The knowledge gained in previous phases is used to draw up risk reports and compare the current risk situation with the risk strategy in order to adopt it.