Supply Chain Risk Management

Increase your overall supply chain risk readiness during disruptions

Formalize a risk appetite to drive operational agility and create value

In a world of increasing complexities and value chain dependencies with internal stakeholders as well as external suppliers, an ill-defined risk appetite can create an environment of ad-hoc, siloed decisions based on short term targets. Gartner’s four-step framework to draft and operationalize an effective supply chain risk-appetite statement helps supply chain leaders drive alignment with key stakeholders, establish practical guidelines and measurable risk indicators that are critical to business success and driving value.

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    Gartner has played a role in the development of a supply chain risk management strategy, the effects of which will be the risk mitigation associated with catastrophic-type events that could be on the order of magnitude of hundreds of millions of dollars.

    Healthcare Industry Client

    Leaders shift focus on supply chain disruption risks

    Traditionally, supply chain leaders focused on wringing efficiencies and cost out of supply chains. More recently, senior management and supply chain leaders are becoming worried about supply chain disruptions due to risks such as natural disasters, pandemics, political uncertainty, cyber and terrorist attacks and third-party or supplier threats. Further, internal transformation of supply chains into lean, complex and globally dispersed entities is adding to the risks of supply chain disruption.

    A recent survey shows that 89% of companies experienced a supplier risk event in the past five years, yet company awareness and plans to mitigate it lack maturity.
    35% of companies have a formal overarching risk appetite statement, and 11% of companies have business unit customized risk appetite statements.

    Managing supply chain disruption risk requires an integrated approach

    Supply chain disruptions arise due to external and internal factors. Addressing these factors requires cross-functional collaboration between enterprise risk management (ERM), procurement, supply chain and other ground managers. Heads of ERM must work alongside supply chain leaders to recognize supply chain failure points and their possible consequences.

    35% of companies have a formal overarching risk appetite statement, and 11% of companies have business unit customized risk appetite statements.

    Supply chain risk management insights you can use

    Gartner future work insights, advice, data and tools help supply chain leaders develop effective strategies to manage disruptions and understand the key drivers of supply chain disruption risks.

    Define Your Risk Appetite to Create a Resilient Supply Chain

    Chief procurement officers (CPOs) are the first line of defense when a disruption occurs. Therefore, CPOs should be responsible for creating a risk appetite statement for the supply chain.

    Pandemic Preparedness Requires Strong Business Continuity Management

    This complimentary webinar reveals key practices for strong business continuity management and how you can utilize BCM in times of crisis, including the Coronavirus (COVID-19) pandemic.

    Coronavirus: Lead Your Organization Through Disruption

    With the rapid spread of COVID-19, leaders must prepare for how to manage and respond to the impact of a global pandemic. In this ThinkCast, we talked with Gartner experts to learn how executives should be responding.

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    Overview

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    Gartner topic experts

    Gartner supply chain experts include more than 100 people worldwide. Meet a few of our leaders.

    Caroline Chumakov
    Principal Analyst

    Miguel Cossio
    Senior Principal Analyst

    Koray Kose
    Senior Director Analyst

    Alex Pradhan
    Senior Principal Analyst

    Gartner experts are trusted advisors for 2,500+ supply chain leaders and executives.

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