Case study: Supply chain risk assessment

| 0 Comments

 

Nico_Snyman.jpgIn this month’s SmartProcurement, Crest Advisory Africa’s Nico Snyman outlines a case-study on supply chain risk assessment.

Crest Advisory Africa (CAA) recently performed an Online Supply Chain Risk Assessment (OSCRA) on a site within the Gauteng area for a leader in the construction environment who works with a number of value chains and supply chain processes, which specifically affect project lifecycle and project delivery.

The OSCRA consists of a three-stage process to identify supply chain based risks (strategic risks, operational risks or project risks), whether within the inbound supply base or processes.

The OSCRA consists of three interactive stages of implementation:
Stage 1: focuses on the internal activities within the site
Stage 2: reviews 150 primary suppliers and their processes
Stage 3: focuses on secondary suppliers, where there is limited spend or deliveries

For the purposes of this case study, the review reflects the findings of stage 1 only.

The assessment identified the entity’s inbound supply process as an overall medium risk. It is important to note that although the risk is identified as medium, it is in the upper percentiles of medium, closer to high risk. Notwithstanding being a medium risk, the assessment highlighted high risk areas.

Risk_rating_per_area.jpgRisk management within the supply chain environment results in nine pre-defined areas of measurement. Below is a summary of the nine supply chain risk categories and their status, reflecting the areas that should be prioritised. Further detail is provided in the table (below) highlighting the potential risks to the specific entity.

In the interests of brevity only matters needing management attention are highlighted. All items reported on are classified as either:
Red: high-risk and requiring focus in the short term
Amber: medium-risk and requiring management action in the medium term

Risks_to_the_entity.png“From CAA’s observations, it has become evident that companies know the supply chain environment, but have limited understanding of its complex measurables,” said Snyman.

The OSCRA is a valuable tool that determines where risks lie in the total supply chain value chain. Through this in-depth analysis, one knows where to allocate resources or where to change a strategy.

Nico Snyman, SA’s risk guru and Chief Executive Officer of Crest Advisory, will give a keynote address at Smart Procurement World Western Cape on “Rising to the challenge and driving procurement success by leveraging the economic downturn”.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Risk Control Manager

  • <500 000 Gauteng Permanent Procurement Consultant Projects / Category Management
R450 000 - R550 000 per annum.Location: Johannesburg ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More