Supply Chain Risk Management (SCRM)
Supply Chain Risk Management Definition (SCRM)
Supply chain risk management (SCRM) is a set of activities aimed at reducing supply chain risks. These activities often include identifying supply chain risks, assessing the probabilities and the severity of impacts, prioritising the risk event to be dealt with and developing actions for mitigating risks or planning backup actions (Vanany et al., 2009).
While traditional views commonly focus on raw materials as part of SCRM strategy, an often overlooked and frequently fatal flaw is to dismiss the impact of suppliers and contractors within the supply chain. Contractors and suppliers who are not adequately qualified to perform the work at hand can negatively impact the brand reputation and shareholder value of the hiring organization.
With the demand for reduced cost and increased profitability, it comes as no surprise that companies continue to outsource activities that fall outside of their core competency. But even so, there is an increasing awareness of the risk related to these decisions. Industry insiders also point to an increase in government regulations as a continuing trend and overall focus on SCRM related activities.
Driven by the demand and frequent oversight related to contractor pre-qualification as it relates to SCRM, BROWZ has developed a number of products to address risk within the supply chain.
- SURE Qualify – Identify and correct risk within your supply chain
- SURE Workforce – Manage employee-level data
- SURE Audit – Conduct safety audits
- Ready Source – Source new suppliers
Organizations wishing to learn more about BROWZ contractor management and SCRM related solutions can learn more here.