Question

1) Briefly describe the three primary risk mitigation strategies based on the idea of flexibility that supply chain managers can use. Supply Chain Management MBA Course

Answer 1

Following are the three primary risk mitigation strategies based on the idea of flexibility that can be used by supply chain managers:

Leveraging from PPPR Model: The PPPR model that is extensively used in the supply chain is a sum total of five four words and an acronym gets translated into prevention, preparedness, response, recovery. PPPR model has always been a choice for supply chain managers to make their supply chain flexible enough to counter and adapt any risk that might come by. It makes the supply chain process proactive, agile, and flexible for any eventuality that might occur.

Involvement of suppliers: To make your supply chain more flexible and in order to mitigate the risk, supply chain managers should do anything to embolden their relationship with the suppliers and bring them onboard for this process. Risk management is a strategic process that calls for the organization to be holistic in its approach and make suppliers part of the process which is mutually beneficial for all stakeholders involved in the process. The involvement of suppliers will make the supply chain less risky, less rigid, and more flexible across the arena.

Create and implement risk contingency plan: Supply chains are vulnerable to risks of political, economic, social, technological, economic and managers across the globe are beginning to understand a need to create a well thought out risk management plan which is flexible enough to adapt to any changes and risks that might occur to avoid any failure of the supply chain.

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