What is a Supply Chain?
A supply chain is a network between a company and its suppliers to produce & distribute a specific product to the final buyer and would include:
- Material Flow: involves the physical movement of goods
- Financial Flow: represents the received and spent cash streams
- Information Flow: such as demand information, inventory status, and order fulfillment.
What is Supply Chain Risk Assessment?
Supply Chain Risk Management is the process of implementation of the required steps to identify, assess and mitigate the risks of business in a company’s supply chain. It is the method through which an organization manages its flow of business including the processes that involve the planning and managing of- sourcing, conversion, procurement and logistics.
Why are Supply Chain Risk Assessment Required?
At every level of the network, the Supply chain gets impacted by different kinds of disruptions, whether supply or operations or demand. These risks may result in:
- Disruptions of internal & external operations
- Not having specified amount of goods to meet a customer’s needs
- Unpredictable scenarios and misunderstood customer demands
- Compliance issues in terms of supplier physical facility & regulation
All of the above may lead to drastic consequences towards the downfall of a business. The sure shot way to prevent this and safeguard a business and its supply chain is by identifying these risks and providing a solution in the current scenario and the future.
What MBG offers in terms of Supply Chain Risk Assessment Services?
Our goal is to help clients to reduce/ remove the effect of disruption or chances of disruption with the below-mentioned list of Supply Chain Risk Assessment services:
- Assessment, Identification, and Analysis of Third-Party Risks: a third-party supply chain risk assessment is an in-depth analysis of vendor risks involved in a third-party relationship with service providers, vendors, suppliers, and the entire supply chain. The main purpose of third-party risk assessment in Supply Chain Management is to determine the nature & extent of risk.
- Business Health Check Review on Financial & Operational Cost: Financial & Operational costs are a prominent parameter to measure the success of most businesses. They represent the “language of business” that the internal and external stakeholders use to evaluate the overall performance. Therefore, efficient supply chain risk assessment, business models & process innovations are required for continual improvements to profitability and performance.
- Drafting or Revisit Entity & Process Control Documentation: Process Documentation marks on the steps necessary to fulfill a task or process. A business is a group of interrelated processes and if these are not mapped together, breakdowns can occur. These documents need to be checked or reviewed from time to time as per the business dynamics.
- Drafting of Negotiation Terms with Vendors and Customers: Every business has certain terms of negotiations with its vendors. Based upon your frame of reference, we draft the terms of negotiation that are best suited and specific to your business.
- Impact Assessment of Claims from Vendor/Customer: Companies face a broad range of supply chains and wider third-party concerns. These vendor concerns cover Supplier Risk Assessment and third-party service providers. All of these are being critically assessed under our service about Impact assessment of claims. Our experts have the tools to help you resolve your specific issues. We offer flexible and tailored end-to-end solutions, strategic advice, or single-issue support depending upon your specific needs.
- Computation of Loss/Damages: Computation of loss/damages is the calculation of actual losses incurred by a business within a stipulated time, to find a resolution to the same and ensure that such losses and damages can be curbed in the future. The first step towards this is to calculate the number of losses that have occurred in an enterprise within a particular period and the issues arising and surrounding them. These require immediate solutions through in-depth assessment, charting out possible future issues or outcomes, and preparing how to resolve them.