As an operating business it is in the best interest of all stakeholders that a strategic supply chain management plan is put in place so that when there is a catastrophic disruption in a company’s supply chain, various steps can be taken to minimize the risk.

So how does a business mitigate the risks imposed by a disruption in its supply chain?

First we address the risks that are associated with disruptions in a company’s  supply chain. Disruptions in a company’s supply chain can come in various forms. Most of them will fall along the lines of:

1. Political risks and labor unrests
2. Mother nature and natural disasters
3. Fire and power grid blackouts.
4. Equipment breakdowns.

The next step is to put together a comprehensive supply chain risk management program that clearly outlines how a company evaluates its suppliers and responds to any disruptions in its supply chain. So that in the event of any unforeseen disruption in the supply chain, the company is well positioned to mitigate risk posed by that particular disruption and lessen the financial impact to the business.

A functioning risk management is critical for a company. Transportation and logistics companies do not only secure themselves against operational risks as damage, delay and piracy. Our team analyses major areas of risk in the supply chain:

• Lack of inventory
• Carrier delays and non-performance (all transport modes)
• Transport and logistics cost volatility
• Transport congestion
• New environmental legislation affecting logistics
• Mergers and acquisitions among service providers
• Cargo theft
• Liability for loss or delays
• Bankruptcy of transport providers
• Fines for non-compliance, sometimes running into millions of dollars