Question

1. Discuss process integration and the attendant challenges with integration along the supply chain.

2. Discuss the differences between supply chain risk management and supply chain security management as well as the importance of both.

Answer 1

ANS 1 - PROCESS INTEGRATION ( SUPPLY CHAIN)

Integrating a supply chain is an incremental process , with priority typically given to the highest potential return on investment .

supply chain integration involves collaborative work between buyers and suppliers , joint product development, common systems and shared information. Full supply chain integration means much more than simply managing the movement of materials and resources and addressing logistical issues thereof. Rather, supply chain integration means an acknowledgement that production stages of the supply chain must exchange data, and analytics, and time-sensitive information in real-time with other points in the supply network.

ATTENDANT CHALLENGES WITH INTEGRATION ALONG THE SUPPLY CHAIN

Challenge 1: Collaboration across supply and partner networks

Challenge 2: Transparency of material flow and inventory status

Challenge 3: Agile production network architecture

Challenge 4: Real-time communication and data analysis

ANS 2- SUPPLY CHAIN RISK MANAGEMENT AND SUPPLY CHAIN SECURITY MANAGEMENT

Supply-chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity".

In other words, SCRM is to apply risk management process tools, with partners in a supply chain or on your own, to deal with risks and uncertainties caused by, or affecting, logistics-related activities or resources in the supply chain.

IMPORTANCE

SCRM attempts to reduce supply-chain vulnerability via a coordinated holistic approach, involving all supply-chain stakeholders, which identifies and analyzes the risk of failure points within the supply chain. Risks to the supply chain range from unpredictable natural threats to counterfeit products, and reach across quality, security, to resiliency and product integrity. Mitigation plans to manage these risks can involve logistics, cybersecurity, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise would have interrupted normal business and so profitability.

Supply Chain Security Management

Supply chain security management is the "application of policies, procedures, and technology to protect supply chain assets from theft, damage, or terrorism and to prevent the unauthorised introduction of contraband, people into the supply chain" . It refers to efforts to enhance the security of the supply chain or value chain, the transport and logistics system for the world's cargo. It combines traditional practices of supply-chain management with the security requirements driven by threats such as terrorism, piracy, and theft.

IMPORTANCE

• Credentialing of participants in the supply chain
• Screening and validating of the contents of cargo being shipped
• Advance notification of the contents to the destination country
• Ensuring the security of cargo while in-transit via the use of locks and tamper-proof seals
• Inspecting cargo on entry.