New risk and resilience tool design ensures supply chains are more robust
The level of risk in global supply chains is at its highest in almost 25 years so anything that can ensure more resilience and consistency will always be an asset.
With that in mind, the Chartered Institute of Procurement & Supply (CIPS) has launched a free online tool to support procurement and supply management professionals, as well as those with an interest in buying, to develop resilience in their own supply chains.
The Risk and Resilience Online Assessment Tool is designed to help procurement professionals identify where specific risks might exist.
The assessment takes around 15 minutes to complete and respondents then receive a report highlighting potentially weak areas in the supply chain and where to go for more support and guidance. As more and more companies begin to use it, it’s hoped that the tool will allow professionals to match one organisation’s risk profile against another.
Andrew Coulcher, Group Director of Membership & Knowledge said: “Managing risk and developing robust mitigation strategies have become key components of any procurement and supply chain professional’s daily activity and the centre of focus as supply chain risk is currently at an all-time high according to the CIPS Risk Index.
“Now more than ever, supply chain professionals need every device available to them in risk and resilience to manage the vagaries in this ever-changing landscape of socio, political, legal and ethical impacts.”
A CIPS survey in 2016 revealed a growing awareness amongst professionals that unmitigated risk can have disastrous consequences for companies, both in terms of revenue and also by impacting on margins. Of the 900 people surveyed, 46% said that they only ‘sometimes’ have mitigation strategies in place, and yet 52% expected the same level of service from their suppliers in the event of a disruption.
“The CIPS Risk and Resilience Tool will provide valuable insights to make organisational supply chains more robust, and able to withstand the forces we are likely to experience in the coming years,” Coulcher added.