Identifying Supply Chain Risks Checklist
Identifying Supply Chain Risks Checklist
Checklist to be sure you have considered key risks to your supply chain.
- Supply Risks:
- Are the suppliers upstream from you unable to provide products for acceptable costs?
- Are the suppliers upstream from you unable to provide products within agreed upon time frames?
- Are the suppliers upstream from you unable to provide products for you that are of high quality and safe for customers?
- Demand Risks:
- Are product deliveries being delayed in your supply chain?
- Have any wrong new products been introduced to your supply chain resulting in wastes of inventory or defects?
- Have new competitors entered the market offering more options for your customers beyond your offerings?
- Have inefficiencies and inconsistencies downstream in your supply chain made it difficult for you to respond to changing demands in regards to volume of products or customizations of products required by your customers?
- Are you experiencing variations in demand from your customers that are making it difficult to forecast market demand?
- Operational Risks:
- Have you experienced a breakdown in core operations?
- Are you facing issues with manufacturing or processing abilities?
- Are your processes not stable (i.e. have a high degree of variability)?
- Have there been recent changes in technology that will require your operations to change (usually at a cost)?
- Have there been recent changes in technology that will require your operations to change (usually at a cost)?
- Is there a change in the “operating exposure” or context of your operations (i.e. exchange rates, government policies that affect production)?
J. Paul Dittman. “Supply Chain Transformation: Building and Executing an Integrated Supply Chain Strategy” (McGraw-Hill, 2013), pp. 29-31.