Predicting and managing supply chain risks
Abstract
In recent years, we have seen how the supply chains of all companies around the world can be challenged by events of varying nature and magnitude. The prevention of these events, and the risks associated with them, is crucial not only for the continuity of a business but also for its survival. The objective of this paper is to provide clear guidance on how to identify and predict supply chain risks and avoid or greatly limit their impact on the value chain of companies. Approaching the subject in a typical 3D manner (discover, develop, deploy), the text aims to provide a toolkit that can be readily applied, especially for companies of production and supply of goods, and easily customised to the specific needs that each enterprise normally has. The paper explains how to create a process for recognising and identifying risks that may affect an organisation; how to prioritise them by quantifying each risk by magnitude and likelihood of occurrence; how to mitigate them through targeted actions for each type of risk; and how to create a risk-sensitive working environment and anticipate its prediction and detection.
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Author's Biography
Francesco Lucchetta is a passionate international procurement and supply chain leader with vast experience in relationship management and closing difficult deals. His expertise and skills cover creating and maintaining partnerships; negotiating and influencing across cultures and languages; managing mergers and acquisitions; optimising sustainable functional transformation; managing risk and generating cross-functional value. After growing in supply functions of multinational companies such as Dow Chemical and Candy Hoover, Francesco joined Pentair in 2012. Since then, he covered different executive roles up to his current one of Group Sourcing Leader. He is a pioneer in supply digital transformation, currently leading and exploring the introduction of blockchain and AI solutions in the supply chain function. Francesco holds a Bachelor’s degree in business management from the University of Turin, Italy, recently integrated with an Executive MBA from the HEC Lausanne, Switzerland. He collaborates as Associate Professor of Supply Chain and Negotiation and senior lecturer with several European universities and business schools, and he regularly speaks at conferences, in Switzerland and around the world, on topics related to procurement and supply chain. He also writes articles for the most important thematic magazines.
Citation
Lucchetta, Francesco (2023, January 31). Predicting and managing supply chain risks. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 5, Issue 2. https://doi.org/10.69554/MTRO5006.
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