Submitted by Daniel Dumke on Wed, 2011-11-23 11:22
Supplier risk assessment and monitoring for the automotive industry
A typical supply chain risk management process consists of four steps: risk identification, assessment, management and monitoring. From those steps, one of the most neglected step is the risk monitoring.
Risk monitoring implies two different actions: Continuous risk assessment and actions, as soon as pre-defined limits are reached.
So this article sheds light on the risk monitoring, from an article by Blackhurst, Scheibe and Johnson (“Supplier risk assessment and monitoring for the automotive industry”).
Very often this blog is concerned with the risk part of supply chain risk management. But to understand the risks within supply chain management, one has to understand the supply chain part as well. In 2000 Lambert and Cooper published a paper on the current “Issues in Supply CHain Management” and I want to highlight the main points here.
I have been reading a lot of interesting articles lately, hence I could not post as often as I wanted. I found an article by van der Vorst and Beulens (2002; “Identifying sources of uncertainty to generate supply chain redesign strategies”) which opens a new perspective on the SCRM issue. I am going to publish a review later this week and link it here.
This review is about a preprint article which already has been accepted for publication by the “European Journal of Operational Research”. But since there is only a limited space for articles in each issue of the journal, final publication of the article is delayed.
The bullwhip effect in supply chains has been around for some time now. The term “bullwhip effect” originated at Procter & Gamble, and is defined as: demand amplification across echelons within a supply chain. This describes the effect that end customer demand may be very static (as for “Pampers” by Procter & Gamble), but the demand experienced by the manufacturer or supplier shows amplified demand variations. (Fransoo and Wouters (2000))
One basic assumption in risk-aware supply chain design is the notion that the design of the supply chain actually has an impact on the vulnerability of the supply chain.
This question has been analyzed about six years ago in a broad empirical study by Wagner and Bode.
The authors use a rather large sample of companies in Germany. Overall nearly 5000 supply chain professionals were asked to participate and 760 actually took part in the study.
Scenario Planning has been around for some time now. By some companies it is seen as a core tool to assess a risky future and support strategic planning. Up to now I only mentioned it briefly in a few articles
In 1977 Vanston et al. were one of the first authors to document a complete scenario planning methodology.