Predict Changes and Evaluate the Supply Chain Risks

Predict Changes and Evaluate the Supply Chain Risks

Posted on, 12/02/2022

Predict Changes and Evaluate the Supply Chain Risks
The pandemic era apprised the federal agencies of the meaning and importance of supply chain risk management. With the forces affecting the global movement of products and materials, they understood the limitations of their previous models for supply chain disruption prediction and the need to focus on anticipating these global changes. 

Now, How can these risk assessments be carried out? Supply chains are dynamic, complex, and a global phenomenon. They are highly resistant to superficial analysis. And when it comes to government agencies, preventing supply chain disruptions will require intense insights and analytics to look out for any signs indicating disruption. 

To successfully control the forces battering the supply chain, these agencies should evaluate the notable risk factors and discover alternate means or resources to ensure the continuity of the supply chain in case of disruptions. 

Best Risk Assessment Practices
Dun & Bradstreet, the world’s leading data analytics and business service provider, has deduced four effective practices that help agencies reduce the impact of supply chain disruptions. 
1. Using credible data sources
2. Identifying the disruption origin point and business linkage
3. Creating an agile and robust monitoring system
4. Building a diversified supply chain
5. Trusting Your Data Source
Data is the soul of all business organisations. And the data chosen should be of top-notch quality, far-reaching, updated and abiding by all the privacy regulations. Data from multiple sources strengthens its credibility by validating suppliers’ identities and discovering connections with other entities in the supply chain. 

Discovering Business Ownership
In complex supply chains, the absence of transparency in business connections and partnerships, in particular, can make risk identification processes difficult. When it comes to government programs, hidden risks are more threatening compared to detectable vulnerabilities. In addition to unknown details, factors like global business connections, incomplete and inaccurate ownership data and changing government policies that require vigilant supply chain management can increase the risk levels. 
A credible data source helps to resolve different aspects of supplier evaluation, such as:

1. Corporate origins of a business
2. Whether a vendor belongs to a foreign entity
3. Multiple supply chain links of a single parent company
4. Discernible threats (such as potential fraud, financial stability and cybersecurity risks) in the supply chain

Monitoring Supply Risk
Reacting to threats is no longer an option in supply risk management solutions. Agencies”Companies” must diligently seek ways to mitigate and stay ahead of these troubles. They must take necessary measures to protect their assets and resources, stay agile to the changing risks in the supply chain and most importantly, find ways to continue the supply chain operations with minimal impact against undefendable supply chain links. 
To look into the nitty-gritty of supply chains, advanced technologies, such as artificial intelligence (AI) and automation, have integrated solutions that extract the data value. These solutions help the agencies in risk detection and mitigation by identifying unseen threats (cyber threats and network vulnerabilities), real-time monitoring of Tier 1 suppliers and auxiliary networks, and business closures that can affect the efficiency of the supply chain. 
Diversifying supply chains
The risk of adverse outcomes is high when concentrating supply-chain vendors among a few entities. Agencies should minimise the supply chain dependence of manufacturing firms in unstable regions or adversarial countries. Building supply chains in stable regions of the world can reduce supply chain risks. An entity's ultimate business ownership, foreign influence and hidden business connections can be revealed using the correct tools that use proprietary data and advanced analytics and help agencies make data-oriented and informed decisions.

Forewarned is Forearmed
The future is unpredictable. As we know, the risks against supply chain integrity are increasing and cannot be eradicated. Illicit profits, IT breaches, and intellectual property thefts keep tempting criminals, rogue states and foreign adversaries for more. These entities that strive for supply chain disruptions are well-funded and technically advanced. Agencies should be ready with measures to mitigate the impact of supply chain disruptions.
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