With the increasing pace of globalization, the influencing factors in supply chain are multiplying. The organizational success in manufacturing is depending more on the efficiency of each segment in the supply chain. The manufacturing operation in a global scenario is vulnerable to any element of uncertainty which may be caused by the prevalent environmental conditions, either internal or external to the organization. It is of utmost importance to raise to the occasion and identify, evaluate, analyze and attempt to mitigate the risk caused due to such uncertainties. This paper recounts practicing experiences as faced by supply chain professionals in the arena of risk management. Such experiences, sourced from various business situations prevalent in manufacturing entrepreneurship organizations, are presented in an illustrative manner in order to reinforce the concepts. The aim to present such situations is to highlight the importance to control the impact caused in risk conditions. The paper provides a strategy model for risk control, which has been found extremely effective in mitigating the probability of occurrence and diminishing the damaging impact in the supply chain. The key concept used in the strategy model is the `Condition Monitoring' concept, which is imported from maintenance management in operations.
In this age of globalization, the influencing factors in the supply chain are multiplying. The supply chain process has assumed a singular position as the most important factor for achieving competitive advantage. In this process, the material flow and the information flow both are the focal areas of management. Generally, in practice lot of attention is paid to the questions related to the material flow. The need of information is probably not felt immediately as its effect, casts manifestations in the downstream stages of supply chain and as we move closer to the end user. It is important to note that supply chain management requires attention to both information and materials flow (Schroeder, 2003).
|
