Supply Chain Risk Analysis Engagement Overview
The reverse logistics services provider wanted to proactively address the growing complexities of their global supply chain. To gauge the performance of their supply chain, the reverse logistics services provider approached SpendEdge to devise a comprehensive approach to supply chain risk analysis. During the course of this engagement, a detailed quantitative risk analysis of the supply chain was carried out to help accurately forecast inventory.
The supply chain risk analysis solution allowed the client to integrate risk prioritization as a core strategy in their current risk management system. Additionally, the reverse logistics services provider redesigned their risk management system to uncover risk factors and devised robust proactive risk mitigation strategies.
About the Client
A leading reverse logistics services provider based out of the United States.
The client was facing difficulties in gauging the performance of their supply chain and managing risks across their business units.
How did SpendEdge Help the Client?
Step 1: Developed a framework to gauge the impact each factor involved in the supply chain
This step involved the quantification of the supply chain activities and their contribution to the flow of materials both in monetary and physical terms. This helped the client to evaluate the importance of each factor impacting the overall performance of their supply chain.
Step 2: Mapped the supply chain activities
This phase involved the identification of activities, resources, establishments, and regulatory requirements that are required to create a flowchart to obtain an overview of the supply chain activities. It also offered the client details on the flow of materials and products throughout the supply network.
Key questions answered in this supply chain risk analysis engagement include
Benefits of the Engagement
Our supply chain analysis solution helped the reverse logistics services provider to determine the impact of factors affecting the supply chain and deliver the service offerings more quickly and efficiently to the end-users. The supply chain risk analysis engagement also offered superior visibility into the supply chain processes by establishing a cohesive relationship between all tiers of the supply chain.
Why incorporate supply chain risk analysis solutions?
Supply chain risk analysis helps in the identification of supply chain activities or processes that can be bypassed to curtail inventory costs and improve forecasts. It also aids businesses to optimize their supply chain processes and reduce redundancy while assisting in the creation of enhanced value-added services.
Supply chain risk analysis incorporates a wide range of functions that may seem intimidating even to a well-established reverse logistics services provider. However, it can be effectively modeled by dividing them into several strategic areas. A supply chain risk analysis engagement that aims to determine current real-world practices in supply chain risks indicates a radical takeoff from conventional models.