Technology plays a key role in moving from “good” to “great” on the supply chain risk management continuum. It’s the catalyst for driving business value from market intelligence investments.
Gartner has identified what differentiates the best approaches to supply chain risk management. Download the scorecard to compare your organization to best practice, and prioritize the activities and initiatives required to reach the next level of maturity.
Key tenets of supply chain risk management are enhancing resilience and improving competitiveness. But supply chain risk management today must account for unprecedented, fast-developing market disruptions, making it difficult to achieve agility and competitive advantage.
Market disruptions include: natural disasters, pandemics, political uncertainty, economic upheaval, cyber and terrorist attacks, third-party or supplier threats, and rapid swings in consumer preferences and demand.
Supply chain transformation also complicates supply chain risk management: Lean, but complex and globally dispersed operations add risks, and the supply chain risk management process is vital in wringing out efficiencies and costs
To respond to market disruptions effectively, supply chain risk management must be a collaboration between supply chain, procurement, and enterprise risk management (ERM) managers.
Innovative technology solutions and advanced analytics enable continuous review and integration of supply chain risk management with the business. Heads of supply chain, procurement, and ERM work together to assess supply chain failure points and the possible impact on supply chain risk management, and put control measures in place to prevent a supply chain interruption.
Gartner provides supply chain leaders with insights, advice, data and tools to develop effective supply chain risk management strategies that predict and mitigate new disruptions.
A comprehensive risk appetite statement enables teams to mitigate and utilize risk to maximize value creation and drive business success.
Follow 4 steps to prepare, draft, and operationalize a supply chain risk appetite statement.
Build a framework to prioritize, continuously assess, and govern supply chain risk.
Questions about becoming a Gartner client?
Master your role, transform your business and tap into an unsurpassed peer network through our world-leading virtual and in-person conferences.
During this on-demand panel discussion, you’ll hear from supply chain leaders on how they are continuing to lead during times of disruption.
Watch “Panel Discussion: Lead Through Times of Disruption in Supply Chain” to hear:
Supply chain and procurement leaders are well-positioned to leverage the integrated risk model, establishing an augmented sourcing function delivering results above expectations, lowering the risk exposure and providing cross-benefits in support of the broader business strategy. This will position the enterprise favorably in its markets and industries as a core player with which innovative and disruptive companies would like to engage. Since the burden of asymmetric partnership is reduced through an agile and adaptive sourcing organization, untapped innovations and key external competencies are now able to come into the company across all engagements, enhancing its competitiveness.
For sourcing, this will drive a stronger linkage to stakeholders and boost, through its initiatives, the business strategy success. Sourcing will truly become a business partner and strategy shaper with a clear purpose and a reserved seat for the supply chain/procurement leader in the C-suite, right next to the CEO.
Gartner analysts recommend that supply chain/procurement leaders responsible for supply chain risk management:
Gartner supply chain experts include more than 100 people worldwide. Meet a few of our leaders.
Gartner experts enable supply chain risk management
We provide supply chain risk management support, helping 2,500 supply chain leader clients improve decision making.
