This white paper discuss on building a supply chain beyond risks factors surrounding organization operations. Companies today work on several supply chain strategies to improve their supply chain. Risk factors in as-is process and how to eliminate those risks.

1. White paper on Building Supply Network beyond risks factor
White Paper
On
Building a supply chain beyond risks
factors
By Alok Anand (aloknnd@yahoo.co.in) {URL http://alokanand.weebly.com/ }
Abstract: This white paper discuss on building a supply chain beyond risks factors
surrounding organization operations. Companies today work on several supply chain
strategies to improve their supply chain.
Supply
Chain
Partnership
Transportation
Information
Technology
Network
Designing
Process Re-
engineering
Contineous
Improvement

2. White paper on Building Supply Network beyond risks factor
Introduction:
India is the second largest population & fastest growing market of the world. Complex
supply chain from urban to suburban to rural network creates several risk factors &
the question here arises is on how we can cater the value chain in minimal costs.
Brand name like Parle has 70% market share in India in the glucose biscuit category
followed by Britannia, Tiger (17-18%) and ITC's Sun feast (8-9%). What is their
Strategy? How they are present in rural, sub urban & urban markets. How they
compete on pricing with their leading competitors is that because of brand awareness
or?
This white paper focus on supply chain collaboration and partnerships, supply chain
structure, transportation and logistics and the role of Information and Communications
Technologies (ICT).
Today companies like Mother Dairy, Safal is working on the principal of contact
strategy and left out the strategy of contract basis of procurement processes.
Haldiram restaurant chain works on a dynamic supply model. Major foods are
prepared at base kitchen and the shelf life of the food is around 2 to 3 days. Cook &
pack at base kitchen and dispatch on temperature controlled transportation trucks to
Low profit
margin
Decrease in
weight per
biscuit
Bulk
purchase of
raw material
Reduce
wastage
Increase
productivity
Availability
in remote
places
Simple
packing

3. White paper on Building Supply Network beyond risks factor
different retail outlets where they procure and server to their customer. They have to
maintain a FIFO process model so as to manage the life span of the product in the
supply chain.
Supply chain of food & processing are very much critical because of perishable items
having short life spam so the supply chain need to be short and fast. If FIFO process is
not maintained them there is a risk factor of quality/freshness of food.
On the other side if we talk about the supply chain of automotive, ancillary or
Iron & mining industry their products are not perishable but still are more critical
more from demand & supply prospective.
Logistics and SCM practices may be defined as a set of activities undertaken to
promote effective and efficient management of supply chains. Today organization work
on how efficiently they can maintain a supplier partnership, physical movement of
goods, meeting customer demands and information sharing throughout the supply
chain. Some of the key logistics and SCM practices that impact performance are related
to estimation of customer needs, efficient and effective delivery, integration and
collaboration throughout the supply chain, sharing of information and vision using ICT
as well as informal methods and use of specialists for performing specific jobs across
the supply chain. All of these practices impact logistics and supply chain performance.
Food
quality
Short
lifespan
Faster
Delivery

4. White paper on Building Supply Network beyond risks factor
Various risks factors of supply chain
Today various risks are evolved across supply chain processes. Customer want value
proposition from the organization and organization have to deliver the goods
according to the compliance. Technically there are two types of supply chain risk
factors:
External risks can be driven by events either upstream or downstream in the supply
chain.
o Demand risks - caused by unpredictable or misunderstood customer or end-
customer demand.
o Supply risks - caused by any interruptions to the flow of product, whether raw
material or parts, within the supply chain
o Environmental risks - from outside the supply chain; usually related to
economic, social, governmental, and climate factors, including the threat of
terrorism
o Business risks - caused by factors such as a supplier's financial or management
stability, or purchase and sale of supplier companies
o Physical plant risks - caused by the condition of a supplier's physical facility and
regulatory compliance.
External
Risks
Internal
Risks

5. White paper on Building Supply Network beyond risks factor
Internal risks provide better opportunities for mitigation because they are within your
business's control.
o Manufacturing risks - caused by disruptions of internal operations or processes
o Business risks - caused by changes in key personnel, management, reporting
structures or business processes, such as the way purchasers communicate to
suppliers and customers
o Planning and control risks - caused by inadequate assessment and planning,
which amount to ineffective management
o Mitigation and contingency risks - caused by not putting contingencies (or
alternative solutions) in place in case something goes wrong
o Cultural risks - caused by a business's cultural tendency to hide or delay
negative information. Such businesses are generally slower to react when
impacted by unexpected events.

6. White paper on Building Supply Network beyond risks factor
Consequences of supply chain failure:
When a needed supply is not received when it is expected or the quantity is less than
expected or quality is not up to standard, the consequences is not only loss of sale or
profit. Supply chain disruptions can also have a number of other adverse consequences
including
Supply risk analysis assessment
It’s always better to prepare for war!
The process of identifying risks, assessing risks and developing strategies to manage
risks is known as risk management. A risk management plan and a business impact
analysis are important parts of business continuity plan. By understanding potential
risks to business and finding ways to minimize their impacts, analyst will help business
recover quickly if an incident occurs.
Types of risk vary from business to business, but preparing a risk management plan
involves a common process. Your risk management plan should detail strategy for
dealing with risks specific to your business.
It's important to allocate some time, budget and resources for preparing a risk
management plan and a business impact analysis. This will help business to meet legal
obligations for providing a safe workplace and can reduce the likelihood of an incident
negatively impacting on business.
Loss to customer
Damage of image/brand
Reduce share price
Inability to maintain customer services
Failure to meet requirement
Delay in products/projects or other strategic growth plans
Lower employee morale

7. White paper on Building Supply Network beyond risks factor
Risk Management Life Cycle:
This guide outlines the steps involved in preparing a risk management plan and a
business impact analysis for business.
Thread assessment
o Low Risk - No recent incidents
o Medium Risk – Information on possible activity
o High Risk – Recent incidents and information
Risk
Identification
Fact Finding
Risk
Definition
Idea findings
Evaluate &
Select
Acceptance
Solution
Execution

8. White paper on Building Supply Network beyond risks factor
Defining Risk Analysis Life cycle:
Risks are a probability of loss or failure.
Risk Identification: Risk Identification is the process of determining risks that could
potentially prevent the program, enterprise or investment from achieving its objective.
Risk Definition: Risk is incorporated into so many different disciplines to portfolio
theory that it should come as no surprise that it is defined in different ways by each
one.
Idea findings: Finding a way out to reduce the risks factor. The techniques used to
minimize and prevent accidental loss to a business.
For example: process re-engineering
Evaluate & Select: Evaluation is a process of analyzing on idea finding by playing
probability game. Select the major idea and freeze the scope of risks solution. Making
an action plan and present to different stake holders.
Acceptance: Based upon process analysis, the business analyst present the solution to
different stake holders to take their acceptance. On successful acceptance the analyst
works on execution stage.
Solution Execution: Execution means how you are going to implement the solution
permanent. This is somehow happens when all stakeholders agreed on the different
points & approve.
During the time of solution execution different process owners are present to monitor
the implementation & document all the facts which need to monitor.

9. White paper on Building Supply Network beyond risks factor
Information Communication Technology in Supply Chain
Today Information communication technology plays vital role in value chain.
The agility and competitiveness of any supply chain depends on the systems and
supply chain information technology used to plan, collaborate, monitor and execute
processes.
Information technology helps company plan, design, justify, select, configure,
implement, and assess the IT solutions one need to drive their supply chain.
The technology assessment pays close attention to company system development
standards and framework for internal and external information flows.
Balanced with leading technology and best practices that are currently being deployed
in the marketplace, technology provides a roadmap which fits with company supply
chain and business objectives.
Areas of concentration across the I.T. applications include:
Trading Partner
Collaboration
o Real-time visibility and exchange with suppliers, customers,
carriers in supply chain network
o Collaboration with suppliers for streamlining inbound processes
o Visibility into customer order status integrated though customer
service web presence

10. White paper on Building Supply Network beyond risks factor
Supply Chain
Planning and
Management
Forecasting, planning and order management systems aligned with
business goals:
o Inventory levels and working capital availability
o Alignment of inventory availability with customer service goals
o Distributed planning across stages of availability and position in
the supply network
Global Supply Chain
Visibility
o Communications with global trading partners
o Import/export compliance and visibility
o Integrated workflow for linkage of business processes
o Rules-based response to supply chain events
Warehouse
Management (WMS) Intelligent management of operations within the warehouse:
o Improved productivity and increased utilization of warehouse
space
o Enhanced customer service
o Better managed inventory
Warehouse
Optimization
o Labor management for optimized productivity
o Slotting management for optimized space and traffic management
Warehouse
Technology
o Material handling controls integration with WMS
o RFID& Barcode scanning and WMS integration
o Voice-directed task execution
Transportation
Management
Allows for quick response to rapidly-changing conditions:
o Reduction in freight and administrative costs and improved on-
time delivery
o Consolidation of orders and optimized loads, freight and parcel
rating and routing
Reverse Logistics
Management
Structured management of return, disposition and credit process:
o Minimized unauthorized returns and transportation cost
o Improved asset recovery, behavior visibility