Top 10 Global Supply Chain Risks<\/h3><\/div><\/div><\/div>PurchTips edition #411<\/p>\n<\/div>
Explore Top 10 Global Supply Chain Risks<\/h4><\/div><\/div><\/div>Supply Chain Management is the planning, organizing, leading and controlling of the Procurement, Purchasing, Production, and Logistics Functions. In other words, it is the total set of activities ranging from the translation of customer requirements, selection of suppliers, acquisition of raw materials to conversion to finished products and services that are delivered to customers.<\/p>\n
The modern supply chain is becoming increasingly dynamic, requiring increased awareness and capability by supply chain practitioners. Strong Strategic Systems Thinking, Environmental Scanning, Operational Execution and Continuous Improvement Acumen are core human capital assets needed to lead today\u2019s supply chains.<\/p>\n
The ability to protect one\u2019s organization from risks underpins the skill set of the 21st<\/sup>\u00a0century supply chain manager. This acumen is enhanced by the mastery of Supply Chain Environments via\u00a0the Science of Environmental Scanning.\u00a0<\/strong>This entails understanding and influencing the socio-demographic, economic, market, technological, competitive, political, industry and ecological factors that impact organizations. The key is to examine, measure, understand, respond to and control trends that cause disruption to supply chain mechanisms.<\/p>\nThe Top 10 Global\u00a0Supply Chain Risks\u00a0are:<\/h2>\n\n- Technology Factors<\/strong>\u00a0caused by\u00a0Big Data and Cyber Security concerns.\u00a0<\/em>Artificial Intelligence<\/em>\u00a0will pose a monumental risk to organizations that are slow to adjust.<\/li>\n<\/ol>\n
\n- Ecological Factors<\/strong>\u00a0due to sustainability issues, uncontrolled emissions, global warming, and negative soil and water impacts<\/li>\n<\/ol>\n
\n- Political Factors\u00a0<\/strong>caused by\u00a0Trade Wars<\/em><\/strong>, military coups, and tribal conflicts that impact the supply of people and production process<\/li>\n<\/ol>\n
\n- Piracy Factors\u00a0<\/strong>on land and sea routes is on the rise an threaten the reliable flow of goods. China, India and the United States are current engaged in an epic struggle with Somali Pirates on the high seas<\/li>\n<\/ol>\n
\n- Supply Chain Management\u00a0Talent Factors\u00a0<\/strong>have long been an issue. Many organizations lack the right talent to effectively lead the evolving modern supply chain.<\/li>\n<\/ol>\n
\n- Organizational Cultural Factors\u00a0<\/strong>as many organizations are set in their ways and struggle to shift their mindsets to cope with the long list of rapidly developing supply chain issues<\/li>\n<\/ol>\n
\n- Economic Factors\u00a0<\/strong>due to the colossal clash and exponential impact of the factors mentioned in the article.<\/li>\n<\/ol>\n
\n- Terrorism Factors<\/strong>\u00a0continue to pose significant threats to the strategic assets that compose the globe\u2019s vast set of supply chains. The war on terrorism is ongoing and while some areas are pacified others emerge into turmoil, threatening the collapse of critical supply chains as the theater is now global<\/li>\n<\/ol>\n
\n- Bull Whip Effect Factors<\/strong>\u00a0due to lack of talent and understanding to effectively manage demand and supply dynamics. Very often unnecessary but significant resources are tied up in parts of a supply chain, tying up cash and increasing exposure to theft, damage, and obsolescence of products<\/li>\n<\/ol>\n
\n- Corruption Factors<\/strong>\u00a0on the rise. Many nations that house critical and rare resources have rampant corruption, making them difficult and risky to do business in. Corruption includes human trafficking, bribery, and child abuse.<\/li>\n<\/ol>\n
What should we do? Supply Chain Practitioners must be proactive in the following:<\/h2>\n\n- Measuring the Magnitude, Severity, and Degree of Occurrence of the Risk Factors in a timely and accurate manner. Look for Trends and Patterns in the data<\/li>\n
- Assessing their organizations\u2019 current situation and ability to respond to threats posed from the risk factors<\/li>\n
- Formulating Strategies to effectively address these threats<\/li>\n
- Executing risk Mitigation Strategies and Tactics<\/li>\n<\/ol>\n
Tools for Reducing Supply Chain Risk:<\/h3>\n\n- FMEA<\/strong>\u00a0(Failure Mode and Effects Analysis) to understand, prioritize and improve existing risk, social responsibility and sustainability factors<\/li>\n
- Benchmarking<\/strong>\u00a0of Best in Class Organizations and how they mitigate risk<\/li>\n
- Problem-Solving Methodologies<\/strong>, such as the\u00a0DMAIC\u00a0<\/em>Model (Define, Measure, Analyze, Improve, Control) or\u00a0PDCA<\/em>\u00a0(Plan, Do, Check, Act). Utilizing this talent to improve supply chain process and interactions with suppliers, internal and external customers is key.<\/li>\n<\/ol>\n
NLPA Library:<\/strong>\u00a0Looking for authoritative\u00a0procurement templates, tools, webinars<\/strong>, and more?\u00a0 Stop trying to create resources\u00a0from scratch and start taking advantage\u00a0of having exactly what you need right at your fingertips in the NLPA Library.<\/p>\n<\/div><\/div><\/div><\/div><\/div>Want A More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2021\/04\/career.jpg\" "\\"career\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n
Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>
PurchTips edition #411<\/p>\n<\/div>
Explore Top 10 Global Supply Chain Risks<\/h4><\/div><\/div><\/div>Supply Chain Management is the planning, organizing, leading and controlling of the Procurement, Purchasing, Production, and Logistics Functions. In other words, it is the total set of activities ranging from the translation of customer requirements, selection of suppliers, acquisition of raw materials to conversion to finished products and services that are delivered to customers.<\/p>\n
The modern supply chain is becoming increasingly dynamic, requiring increased awareness and capability by supply chain practitioners. Strong Strategic Systems Thinking, Environmental Scanning, Operational Execution and Continuous Improvement Acumen are core human capital assets needed to lead today\u2019s supply chains.<\/p>\n
The ability to protect one\u2019s organization from risks underpins the skill set of the 21st<\/sup>\u00a0century supply chain manager. This acumen is enhanced by the mastery of Supply Chain Environments via\u00a0the Science of Environmental Scanning.\u00a0<\/strong>This entails understanding and influencing the socio-demographic, economic, market, technological, competitive, political, industry and ecological factors that impact organizations. The key is to examine, measure, understand, respond to and control trends that cause disruption to supply chain mechanisms.<\/p>\nThe Top 10 Global\u00a0Supply Chain Risks\u00a0are:<\/h2>\n\n- Technology Factors<\/strong>\u00a0caused by\u00a0Big Data and Cyber Security concerns.\u00a0<\/em>Artificial Intelligence<\/em>\u00a0will pose a monumental risk to organizations that are slow to adjust.<\/li>\n<\/ol>\n
\n- Ecological Factors<\/strong>\u00a0due to sustainability issues, uncontrolled emissions, global warming, and negative soil and water impacts<\/li>\n<\/ol>\n
\n- Political Factors\u00a0<\/strong>caused by\u00a0Trade Wars<\/em><\/strong>, military coups, and tribal conflicts that impact the supply of people and production process<\/li>\n<\/ol>\n
\n- Piracy Factors\u00a0<\/strong>on land and sea routes is on the rise an threaten the reliable flow of goods. China, India and the United States are current engaged in an epic struggle with Somali Pirates on the high seas<\/li>\n<\/ol>\n
\n- Supply Chain Management\u00a0Talent Factors\u00a0<\/strong>have long been an issue. Many organizations lack the right talent to effectively lead the evolving modern supply chain.<\/li>\n<\/ol>\n
\n- Organizational Cultural Factors\u00a0<\/strong>as many organizations are set in their ways and struggle to shift their mindsets to cope with the long list of rapidly developing supply chain issues<\/li>\n<\/ol>\n
\n- Economic Factors\u00a0<\/strong>due to the colossal clash and exponential impact of the factors mentioned in the article.<\/li>\n<\/ol>\n
\n- Terrorism Factors<\/strong>\u00a0continue to pose significant threats to the strategic assets that compose the globe\u2019s vast set of supply chains. The war on terrorism is ongoing and while some areas are pacified others emerge into turmoil, threatening the collapse of critical supply chains as the theater is now global<\/li>\n<\/ol>\n
\n- Bull Whip Effect Factors<\/strong>\u00a0due to lack of talent and understanding to effectively manage demand and supply dynamics. Very often unnecessary but significant resources are tied up in parts of a supply chain, tying up cash and increasing exposure to theft, damage, and obsolescence of products<\/li>\n<\/ol>\n
\n- Corruption Factors<\/strong>\u00a0on the rise. Many nations that house critical and rare resources have rampant corruption, making them difficult and risky to do business in. Corruption includes human trafficking, bribery, and child abuse.<\/li>\n<\/ol>\n
What should we do? Supply Chain Practitioners must be proactive in the following:<\/h2>\n\n- Measuring the Magnitude, Severity, and Degree of Occurrence of the Risk Factors in a timely and accurate manner. Look for Trends and Patterns in the data<\/li>\n
- Assessing their organizations\u2019 current situation and ability to respond to threats posed from the risk factors<\/li>\n
- Formulating Strategies to effectively address these threats<\/li>\n
- Executing risk Mitigation Strategies and Tactics<\/li>\n<\/ol>\n
Tools for Reducing Supply Chain Risk:<\/h3>\n\n- FMEA<\/strong>\u00a0(Failure Mode and Effects Analysis) to understand, prioritize and improve existing risk, social responsibility and sustainability factors<\/li>\n
- Benchmarking<\/strong>\u00a0of Best in Class Organizations and how they mitigate risk<\/li>\n
- Problem-Solving Methodologies<\/strong>, such as the\u00a0DMAIC\u00a0<\/em>Model (Define, Measure, Analyze, Improve, Control) or\u00a0PDCA<\/em>\u00a0(Plan, Do, Check, Act). Utilizing this talent to improve supply chain process and interactions with suppliers, internal and external customers is key.<\/li>\n<\/ol>\n
NLPA Library:<\/strong>\u00a0Looking for authoritative\u00a0procurement templates, tools, webinars<\/strong>, and more?\u00a0 Stop trying to create resources\u00a0from scratch and start taking advantage\u00a0of having exactly what you need right at your fingertips in the NLPA Library.<\/p>\n<\/div><\/div><\/div><\/div><\/div>Want A More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n
Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>
Supply Chain Management is the planning, organizing, leading and controlling of the Procurement, Purchasing, Production, and Logistics Functions. In other words, it is the total set of activities ranging from the translation of customer requirements, selection of suppliers, acquisition of raw materials to conversion to finished products and services that are delivered to customers.<\/p>\n
The modern supply chain is becoming increasingly dynamic, requiring increased awareness and capability by supply chain practitioners. Strong Strategic Systems Thinking, Environmental Scanning, Operational Execution and Continuous Improvement Acumen are core human capital assets needed to lead today\u2019s supply chains.<\/p>\n
The ability to protect one\u2019s organization from risks underpins the skill set of the 21st<\/sup>\u00a0century supply chain manager. This acumen is enhanced by the mastery of Supply Chain Environments via\u00a0the Science of Environmental Scanning.\u00a0<\/strong>This entails understanding and influencing the socio-demographic, economic, market, technological, competitive, political, industry and ecological factors that impact organizations. The key is to examine, measure, understand, respond to and control trends that cause disruption to supply chain mechanisms.<\/p>\n NLPA Library:<\/strong>\u00a0Looking for authoritative\u00a0procurement templates, tools, webinars<\/strong>, and more?\u00a0 Stop trying to create resources\u00a0from scratch and start taking advantage\u00a0of having exactly what you need right at your fingertips in the NLPA Library.<\/p>\n<\/div><\/div><\/div><\/div><\/div> Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>The Top 10 Global\u00a0Supply Chain Risks\u00a0are:<\/h2>\n
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What should we do? Supply Chain Practitioners must be proactive in the following:<\/h2>\n
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Tools for Reducing Supply Chain Risk:<\/h3>\n
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Want A More Rewarding Procurement Career?<\/h5><\/div>
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