Supply Chain Risk Management (SCRM) Videos and Training.

Supply chain risk management (SCRM) is the process of identifying, assessing, and mitigating risks that may impact the supply chain. SCRM training typically covers a range of topics related to identifying and managing risks in the supply chain, including:

Identifying risks: This may involve identifying potential sources of risk, such as suppliers, logistics providers, and regulatory environments.
Assessing risks: This may involve evaluating the likelihood and impact of potential risks, as well as the potential consequences of those risks.
Mitigating risks: This may involve implementing strategies and processes to reduce the likelihood or impact of risks, such as diversifying the supply base, implementing contingency plans, or implementing risk management tools and technologies.
Monitoring and reviewing risks: This may involve ongoing monitoring of the supply chain to identify new or emerging risks, as well as reviewing and updating risk management strategies as needed.

SCRM training may also cover topics such as supply chain visibility, supplier relationship management, and crisis management. Overall, the goal of SCRM training is to help organizations develop the skills and knowledge needed to effectively identify and manage risks in the supply chain, in order to maintain the continuity and efficiency of their operations.

Here are a collection of videos on supply chain risk management (SCRM). If you want a quick summary of SCRM the first two videos are 5 minutes or less. For more details the third video is about an hour long.

Supply Chain Risk Management (SCRM) Video is about four minutes.

Video is about 5 minutes.

Supply Chain Risk Management (SCRM)

Supply Chain Risk Management (SCRM) is the process of identifying, assessing, and mitigating risks that could negatively impact the supply chain operations. It involves developing strategies to anticipate, prevent, and respond to disruptions or threats within the supply chain to maintain its efficiency, resilience, and sustainability.

Supply chains today are increasingly complex and globalized, which means they are vulnerable to a wide range of risks, including financial, operational, geopolitical, environmental, and technological threats. Therefore, SCRM aims to minimize these risks to ensure smooth operations and safeguard against financial losses, reputational damage, and supply chain disruptions.

Key Components of Supply Chain Risk Management

Risk Identification
The first step in supply chain risk management is to identify potential risks that could disrupt the flow of goods, services, or information. Risks can arise from various sources, including:
- Natural disasters (earthquakes, hurricanes, floods)
- Political instability (geopolitical tensions, trade wars, labor strikes)
- Economic factors (inflation, changes in currency exchange rates)
- Supplier risks (quality issues, financial instability, production delays)
- Technology risks (cyberattacks, system failures, data breaches)
- Logistical challenges (transportation bottlenecks, port congestion)
- Regulatory changes (customs regulations, tariffs, environmental laws)
- Market demand fluctuations (unexpected spikes or drops in demand)
Risk Assessment and Prioritization
Once the risks are identified, businesses need to assess their potential likelihood and impact on the supply chain. Risks should be ranked based on:
- Probability: How likely is the risk to occur?
- Impact: What will be the financial, operational, and reputational impact if the risk occurs?
  This helps prioritize which risks require immediate attention and resources.
Risk Mitigation Strategies
After assessing risks, companies can implement mitigation strategies to reduce the likelihood or impact of these risks. Mitigation strategies may include:
- Diversifying suppliers: To avoid reliance on a single supplier or region, which can be risky during disruptions (e.g., sourcing from multiple countries or having backup suppliers).
- Building redundancies: Establishing buffer stock, alternate transportation routes, or backup production facilities to ensure continuity in case of a disruption.
- Insurance: Purchasing insurance policies to cover risks like natural disasters, inventory loss, or equipment breakdowns.
- Contingency planning: Developing detailed plans to handle potential disruptions, including alternative sourcing, rerouting shipments, and emergency communication protocols.
- Collaborative relationships: Building strong relationships with suppliers, logistics partners, and other stakeholders to ensure better coordination and problem-solving during crises.
- Technology adoption: Leveraging predictive analytics, AI, and IoT to improve risk detection, enable real-time monitoring, and enhance decision-making.
Risk Monitoring and Detection
Ongoing monitoring is essential to detect emerging risks or changes in existing risks. Businesses should regularly track performance indicators and watch for any early signs of trouble in their supply chain. Techniques include:
- Real-time tracking and data monitoring (e.g., using IoT sensors for inventory and shipments).
- Regular supplier assessments to ensure they are financially stable and meeting agreed-upon performance standards.
- Scenario planning and stress testing to assess how the supply chain might react to specific risks or disruptions.
Response and Recovery
Even with careful planning, supply chain disruptions are inevitable at times. Therefore, having a well-established response plan is essential. This includes:
- Rapid response protocols: Clear steps to follow in case of an event, such as activating contingency plans and communicating with affected stakeholders.
- Recovery strategies: Plans to quickly restore normal operations, such as rerouting shipments, finding alternative suppliers, or activating backup production facilities.
- Post-event analysis: After a disruption, businesses should assess their response effectiveness and identify areas for improvement to strengthen future risk management efforts.

Types of Risks in Supply Chain and Mitigation Strategies

Operational Risks:
Risks related to internal processes, human error, or inefficiencies.
- Mitigation: Invest in automation, employee training, and standard operating procedures (SOPs).
Financial Risks:
Risks related to cost fluctuations, payment defaults, or currency exchange rates.
- Mitigation: Implement hedging strategies, credit risk assessment, and establish diverse financial sources.
Geopolitical Risks:
Risks arising from changes in political stability or international trade relations.
- Mitigation: Diversify sourcing and be prepared with trade compliance strategies.
Natural Risks:
Risks due to environmental factors like floods, earthquakes, or weather-related disruptions.
- Mitigation: Use climate resilience planning, and geographically distributed supply chains, and build safety stock in high-risk areas.
Cybersecurity Risks:
Risks due to cyberattacks, data breaches, or system failures that affect digital systems.
- Mitigation: Strengthen IT infrastructure, regular cybersecurity audits, and invest in data encryption and access control.
Supplier Risks:
Risks associated with the financial health, quality issues, or failure of key suppliers.
- Mitigation: Build multi-supplier strategies, assess supplier performance, and create long-term partnerships.
Regulatory Risks:
Risks from non-compliance with changing laws, customs, and industry regulations.
- Mitigation: Stay informed about regulatory changes, have legal counsel or compliance officers, and conduct regular audits.
Technological Risks:
Risks related to the failure or disruption of technology systems.
- Mitigation: Ensure system backups, have disaster recovery plans, and adopt cloud-based systems for greater resilience.

Benefits of Effective Supply Chain Risk Management

Improved Resilience: Companies can quickly adapt to disruptions, ensuring continuity of operations.
Cost Savings: Proactively managing risks can reduce the financial impact of disruptions, including potential losses in revenue, production, and recovery costs.
Better Supplier Relationships: Strong partnerships with suppliers ensure smoother communication and collaboration during crises.
Customer Satisfaction: Ensures on-time delivery and quality, maintaining customer trust and loyalty even during disruptions.
Competitive Advantage: Businesses that effectively manage risks can maintain stability in volatile environments, outpacing competitors who are less prepared.

Conclusion

Supply Chain Risk Management is an essential component for businesses aiming to ensure long-term success and resilience in today’s complex, dynamic environment. By identifying, assessing, and mitigating risks proactively, companies can safeguard their operations, protect their reputation, and reduce the costs and impacts associated with disruptions. In an increasingly interconnected world, a comprehensive SCRM strategy helps businesses build more agile, resilient, and responsive supply chains capable of handling emerging threats.

SCM Quotes

“Supply chains cannot tolerate even 24 hours of disruption. So if you lose your place in the supply chain because of wild behavior you could lose a lot. It would be like pouring cement down one of your oil wells.” ~Thomas Friedman.
“When people create business cases for automation it is primarily about efficiency gains. Automation also helps greatly with SCRM because labor can cause many issues (labor shortages).” ~Dave Waters
“The biggest risk is not taking any risk… In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” ~Mark Zuckerberg.
“Smart companies fail because they do everything right. They cater to high-profit-margin customers and ignore the low end of the market, where disruptive innovations emerge from.” ~ Clayton Christensen
“The goal is not to improve one measurement in isolation. The goal is to reduce operational expenses AND reduce inventories and increase throughput simultaneously.” ~Eliyahu M. Goldratt
“Why can obtaining funding for supply chain risk management be difficult? It’s because SCRM is a cost avoidance, not a cost savings. However, with the recent events of the pandemic and wars supply chain risk management is on the minds of executives much more than it ever as been.” ~Dave Waters
“Technologies that are emerging today will soon be shaping the world tomorrow and well into the future – with impacts to economies and to society at large. Now that we are well into the Fourth Industrial Revolution, it’s critical that we discuss and ensure that humanity is served by these new innovations so that we can continue to prosper.” ~Mariette DiChristina