Supply Chain Risk Management

The Supply Chain Risk Management (SCRM) assistance provided by RMI includes:

Developing the context for your SCRM framework – stakeholders, risk management criterion, risk appetite and tolerance, SWOT of your supply and manufacturing organization, define risk management structures
Assist your organization in identifying and validating its supply chain risks – sole, single and multi-source risks beyond the first tier of your supply chain
Develop your organization’s risk analysis and validation methodologies and capabilities
Facilitate the development and ownership of risk treatment, so that it takes place at all required levels of your organization, maximizing value and lowering risk
Support your organization in ‘joining up the dots’ of Supply Chain Risk Management through developing a communications, monitoring and review framework to suit your current and future needs

RMI utilises established best practices including ISO 31000 (Risk Management) and BS 25999 (Business continuity) in developing and implementing the SCRM Process.

RMI participated in the NSAI National Expert Group which published guidelines to ISO 31000.

Elements that may be considered within this Framework are:

(All SCRM frameworks are contingent on the structure, markets, culture, innovation and capacity of the organisations for which they are designed and implemented. They are designed to scale as required. They are processised so as to provide a consistent approach. They must communicate with clarity and timeliness.)

Framework Component	Elements to be Considered	Sub-project Activities
Communicate & Consult	What stakeholders are directly consulted What existing forums can we use to communicate? What information is available on other indirect stakeholders? What additional means of communications are required?	Internal & External stakeholders Global forums Existing programs & frameworks, e.g. RM, S&OP
Establish the Context	What are the external drivers for SCRM? What are the internal drivers? Organisation supply chain SWOT Engagement with supply partners and logistic providers Streamlining with other organisation initiatives	SCRM champion and sponsors Establish framework scope and community Awareness and trust building with partners & providers Agree terminology and risk criterion
Identify the Risks	Operational Disruptive Product profiled; Raw Material profiled Strategic, Business, Hazardous Operations & Compliance Risks Regulatory drivers Processes Product integrity	Product families Current resilience ? capacity, processes, BCM in place, engineering programs Supply & Logistics multi-tier risk assessments BCM impact analysis, supporting toolsets & training; Interdependency identification Process robustness Security programs
Analyse the Risks	Consistency of analysis Scoping Review	Supply chain risk analysis Business continuity risk analysis
Evaluate the Risks	Existing continuities, contingencies and controls in place Vulnerabilities Prioritisation Cost benefit	Integration of existing programs ? Quality, Long Range Forecasting, 3rd party manufacturing analysis, Existing Capacities, etc Review of in-depth risk assessments Consistency through framework
Treat the Risks	Supply qualification Process review and modification Outsourcing and insourcing Enterprise-wide BCM Capacity planning Supply and Demand management	Internalised BCM ? policy, awareness, training, toolsets, communications, planning, exercise, maintain, audit, embed Supply qualification
Monitor & Review	Ownership & responsibilities Accountability & sign-off Issue management and escalation Independent Audit Committee Enterprise Risk Management overview	S&OP SCRM framework Product Managers and management Continual awareness program Succession planning and management development