Answer to Question #288077 in Management for Jabra

Question

a supply chain faces various risks due to uncertainties, turbulent political environment amongst other things. think of a global supply chain, where production happens in a country, parts come from different countries, and the final market exists elsewhere. what are the possible risks in this supply chain, and how can these risks be mitigated? your response should focus on the following aspects: possible risks that can affect activities at the location of the supplier, market, or production facility, including the logistics for movement of goods. categorize these risks and discuss mitigation strategies for each category of risks.

Answer 1

a) Demand Risks: They occur when you miscalculate product demand and are often the product of a lack of insight into year-over-year purchasing trends or unpredictable demand. It will affect the market of the goods in the market, production facility if concerned with raw materials. It can be mitigated by ensuring proper forecasting of the demand schedules.

b) Supply Risks: They occur when the raw materials your business relies on aren’t delivered on time or at all, thereby causing disruption to the flow of product, material and thus affecting the overall market stability. It can be mitigated by ensuring that raw materials are readily available when required and if not its communicated on time.

c) Environmental Risks: It is the risk in the supply chain is the direct result of social-economic, political, governmental, or environmental issues that affect the timing of any aspect of the supply chain. It can be mitigated by government creating an enabling environment for business and logistics operations.

d) Business Risks: Business risks occur whenever unexpected changes take place with one of the entities you depend on to keep your supply chain running smoothly. Proper prediction and forecasting measures can be helpful to mitigate the possibility of business risks.