Thursday, 15 September 2011
Best practice guide on supply chain management launched by SCRLC
With supply chain disruption at the forefront of many risk managers’ minds following the recent Japanese earthquake and other global disasters the Supply Chain Risk Leadership Council (SCRLC) has published a best practices guide to help companies address the growing issue of supply chain risk.
The recent Japanese earthquake and tsunami caused severe supply chain disruption
It aims to helps organisations to identify internal and external risk factors, analyse and evaluate supply chain risk and understand tools and processes for monitoring risk on a continual basis.
It provides practical templates and frameworks to assist company leaders to develop and evolve their supply chain risk capabilities.
Rather than prescribing a specific approach, the guide describes multiple potential directions applicable to a variety of industries, including concrete examples drawn from the experiences of SCRLC member organisations.
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In practice, members of the SCRLC were able to significantly reduce the impact and the timescale of the disruption experienced by their organisations resulting from the Japan earthquake. These organisations benefited particularly from sharing information and approaches to handling the crisis.
A number of recent events have highlighted the potential exposure of global supply chains to disruptions such as the recent Japan earthquake and tsunami, supplier insolvencies, political instability, weather events and labour issues, said the SCRLC.
The SCRLC and its members have created a cross-industry forum for sharing leading practices and effective solutions for supply chain management.
Based on this collaboration, the SCRLC says it has developed a core set of principles and practices to foster advancement in effective supply chain risk management.
“In practice, members of the SCRLC were able to significantly reduce the impact and the timescale of the disruption experienced by their organisations resulting from the Japan earthquake. These organisations benefited particularly from sharing information and approaches to handling the crisis,” said the council.
The report will be updated on an annual basis.
John Brown, Chairperson of the SCRLC and Director, Risk Management, Supply Chain at The Coca-Cola Company said: “The Council is issuing these guidelines to foster best practices in Supply Chain Risk Management across all industries. We hope it will enable organisations to move forward in creating resilient supply chains. We recognise this document is a starting point and intend to publish updates in the future to continuously improve the knowledge within, incorporating user feedback and new practices learned from working with Council members.”
The guidelines are available at www.scrlc.com and www.supplychainriskinsights.com.
The SCRLC said it welcomes input on the guide, including any interest from those interested in helping to expand the guide in the future.
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