How do I manage risk for my Supply Chain?

I have a portfolio of suppliers. How do I manage risk across this with all my managers?

Summary

In order to keep a view across your whole portfolio, you must measure how the portfolio delivers as a “unit”.

  1. Set your Portfolio Strategy: KPIs for Cost, Quality, Time.
  2. Measure Performance against KPI.
  3. Communicate the combined Portfolio Performance from a Risk Perspective.

By . Published: 2016/05/16 11:02:01 AM, Last Updated: 2016/05/16 11:02:01 AM

More detail

Too often, a Supplier Portfolio runs as a series of supplier “Silos” connected by contractual SLAs and hand-over points. This often leads to silo’d risk management, which can manifest as an issue at a portfolio level.

Risk Management at a Portfolio Level

To avoid issues at a portfolio level, performance must be measured and summarised together to ensure the entire Supply Portfolio is self-aware.

Be Portfolio-Aware!

  1. Set your Portfolio Strategy:
    1. KPIs for Cost, Quality, Time.
    2. This is a standard approach – nothing new YET
  2. Measure Performance against KPI.
    1. Again, nothing new here,… but the difference comes in #3..
    2. wait for it!
  3. Combined Portfolio view:
    1. Communicate the combined Portfolio Performance from a Risk Perspective.
    2. This must be done simply, and regularly, so that the whole Portfolio can monitor it.
    3. Update regularly and broadcast it.

 

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Answer Count: 1 When was the question asked? 2016/05/16 11:02:01 AM By .