What is a De-Risking Supply Chain Strategy?
A de-risking supply chain strategy is a plan of action that reduces the risk of disruptions and other factors that can negatively impact the supply chain. It focuses on mitigating risks and improving resilience while enhancing overall supply chain visibility. The strategy is achieved through the development of risk management protocols, the evaluation of risk exposure, and the automation of processes. By developing a de-risking supply chain strategy, supply chain managers can ensure continuity and stability of the supply chain in the face of disruptions and unexpected events.
What's included in this De-Risking Supply Chain Strategy template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the De-Risking Supply Chain Strategy template for?
This de-risking supply chain strategy template is designed for supply chain managers and other professionals involved in the supply chain process. It provides a comprehensive guide to developing a risk mitigation strategy that can reduce risk exposure and improve overall supply chain visibility. The template can be used to create a tailored plan to reduce risks within the supply chain and ensure continuity and resilience.
1. Define clear examples of your focus areas
The first step in creating a de-risking supply chain strategy is to define the focus areas. Focus areas are the areas of the supply chain that need to be addressed in order to reduce risk exposure. Common focus areas include risk mitigation, supplier management, and process automation. Each focus area should have defined objectives, measurable targets (KPIs), and related projects (actions) in order to effectively reduce risk.
2. Think about the objectives that could fall under that focus area
Objectives are the goals that need to be achieved in order to reduce risk exposure in a particular focus area. Objectives should be specific and measurable, and they should be achievable within a set timeframe. Examples of some objectives for the focus area of Risk Mitigation could be: Establish Risk Management Protocol, and Reduce Risk Exposure.
3. Set measurable targets (KPIs) to tackle the objective
The next step is to set measurable targets (KPIs) for each objective. KPIs are the metrics that can be used to measure the progress of the objectives. KPIs should be defined in terms of an initial value, a target value, and a unit of measurement. Examples of KPIs include implementing a risk management plan (initial value 0%, target value 100%), reducing risk exposure (initial value 10%, target value 0%), and increasing automation of processes (initial value 10%, target value 75%).
4. Implement related projects to achieve the KPIs
Once the objectives and KPIs have been established, the next step is to implement projects (actions) to achieve the KPIs. Projects should be tailored to the specific objectives and should be actionable. Examples of projects include developing a risk management plan, evaluating risk exposure, evaluating and selecting suppliers, monitoring supplier performance, and implementing automated processes.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade Strategy Execution Platform is a powerful tool for managing and executing a de-risking supply chain strategy. The platform provides a comprehensive suite of features to help supply chain managers develop and implement a risk mitigation strategy quickly and effectively. With Cascade, supply chain managers can build an effective strategy, track progress, and see faster results from their de-risking supply chain strategy.