I had the opportunity to view a very timely Supply Chain Operations Council (SCOR) sponsored webcast titled Managing Risk in Your Organization with the SCOR Methodology. In full disclosure, I am currently a member of the North America leadership team for SCOR, and have been advocating more attention to this topic.
Here’s some background. A while back, SCOR member companies reported that less than half of enterprises have established measurement metrics and procedures for assessing and managing supply chain risks. From this need arose a Risk Management Project Team, chaired by Dave Morrow of IBM, comprised of many other member companies. This team’s purpose was to enhance the SCOR model by addition of meaningful metrics related to identifying, tracking, and mitigating risk in the supply chain. This presentation, now available for downloading on the SCOR web site, and subsequent training provides the outcome of this multi-industry team. I previously provided commentary on the new SCOR metrics for risk management in a posting back in October of 2008. .
What impressed me the most was the progress the team has made in providing a thoughtful definition and overall perspective of supply chain risk management, as well as a methodology to fit SCRM measures into the SCOR Model. The framework now includes a means for identifying best practices for visibility and quantification of risk, as well as quantification through a Value-At-Risk category of metrics. Quite frankly, there wasn’t enough time in a one-hour webcast to fully understand and comprehend these new concepts and metrics, but SCOR has provided very reasonably priced one-day training workshops to explain and iterate examples of metric development. If you are in need of a methodology to identify and mitigate supply chain risk, you may want to schedule yourself for this training. The next workshop is scheduled March 19th in Houston, and here is the registration link.
Supply chain risk management has increasingly become a more critical consideration of global supply chain strategy and tactics The good news is that organizations such as SCOR are making efforts to provide assistance in SCRM metric identification. As the economy continues to provide a period of business downturn, now made be the time to invest in global supply chain risk assessment. I for one, will be adopting some of these metrics in my consulting with clients.
It would be helpful for blog readers to review this model and share your perceptions in our comments section on its potential applicability and use within your organization.