Sources of risks
Global supply chain process is faced with dynamic risks just like any other industry. Demand and supply risks are the first category where the human resource involved with the supply chain is worried whether there will be enough supplies and whether goods and services will be in demand. There should be a balance between the supply and the demand for an efficient supply chain process (Ho, Yildiz, & Talluri, 2015). Operations risks, on the other hand, involve running of the supply chain process where the manager has to ensure that everything is running sleekly. Technology risk includes the failure of IT systems that may have a massive effect on the running of the supply chain process. Another source of uncertainty include the price volatility and demand shocks; they are aspects of industrial sources risk that are likely to affect the global supply chain process.
Ways of reducing of these global supply chain risks include understanding the suppliers through the identification and prioritization of the risks. It would consist of gathering both internal and external information. The second way is the mapping of the volume of products forecasted to flow through the global channels. Mapping software should be used to help in the visualization of the product streams including the identification of the potential vulnerabilities in the global supply chains. The third approach is the identification, investigation, and confirmation of the possible anomalies. It usually involves the review of the accuracy, existence and the approval of the transactions under consideration. The supply chain managers could also track, manage and learn information about the global supply chain process. It would include controlling the compliance and risks information such as the geographic location and the audit history (Giannakis, Papadopoulos, 2016).
Ho, W., Zheng, T., Yildiz, H., & Talluri, S. (2015). Supply chain risk management: a literature review. International Journal of Production Research, 53(16), 5031-5069.
Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.