Risk Management in Supply Chain
Any functional organization knows the risks they face on a daily basis, and these can be seen throughout any department. The supply chain is no exception, and may even be the side of business where the most risk is taken on. From economic and governmental factors to extreme weather and traffic accidents, there are a lot of things that can affect an organization’s ability to manufacture and deliver a product. Risk Management can be an intimidating and abstract field at times, but it is an essential task for any strong supply chain to take seriously.
One of the keys to effectively managing risk is to take a proactive approach to accurate forecasting and supplier and vendor evaluation. Forecast accuracy allows a company to plan for product shortage, whether it happens due to production failure or on the delivering end because of a closed down highway. In assessing these sort of risks, manufacturers can determine what amount of surplus product would be sufficient to replace damaged or missing product.
On top of this, any company should do their best to evaluate the health and reliability of their vendors and suppliers. This includes working closely with carriers who are shipping product and who are ultimately responsible for timely delivery. If they have a transparent process and take tracking and problem-solving seriously, they are a better carrier partner than those who provide no visibility and try to take a hands-off approach.
At Zip Xpress, we understand that you’re taking a major step in managing your transportation risk. We are committed to providing top-notch customer service and maintaining a transparent, proactive solution to your supply chain needs. As anyone in the logistics world knows, there are always going to be unexpected delays. We can’t always have control over them, but we can take the steps to properly communicate and get to work on fixing the problem before it’s too late. To see how we can minimize your risk on the road, start today with Zip Xpress!