Supply Chain Risk Management – Shedding light across the value-added chain

Enterprise risk management must extend its reach so that environmental, health and global supply-chain risks play a more significant role. Should one of these risks occur, there must be a fast, targeted, consistent response. Accordingly, the function of supply chain risk management (SCRM) will become increasingly important in companies.

The Association for Supply Chain Management, Procurement and Logistics (BME) and the Fulda University of Applied Science have conducted a joint survey as part of an in-depth study on the status quo of risk management within supply chains across Germany, Austria and Switzerland. Their BME 2020 Logistics Survey examined the topic of supply chain risk management, from its basic functions and effectiveness, and provided a thorough assessment of its maturity level, developmental potential as well as its contribution to overcoming the COVID-19 pandemic. 

This crisis has clearly revealed the weaknesses of global supply chains and the need for mature, sustainable SCRM. The study also shows that companies have established many individual components but lack the necessary structures and IT systems for integrated SCRM. Only 20% of the responding companies have a separate, central function that is responsible for SCRM. This means that they lack not only the necessary transparency on the current risk situation across the entire value-added chain but also the ability to coordinate early responses to overcome critical risks.   

Effective, efficient supply chain risk management can be pivotal in making the risk situation across the global supply chains more transparent. Innovative, integrated IT solutions such as BIC GRC Solutions (formerly risk2value) can process all available risk information and deliver a reliable foundation for decision-making in times of crisis. Through the software’s simulation and stress-testing capabilities, risk scenarios can be evaluated so that the proper control measures based on supply chain risk management can be initiated in the early stages. 

Driven by the grave impact of the COVID-19 pandemic, SCRM will gain importance within the corporate organization and its maturity level will rise significantly as well. But until that time, there is still considerable work to be done. The findings of the BME Logistics Study 2020 underscore that many companies have much catching up to do in the field of supply chain risk management. It is time to close this gap for good.

We hope that this informative research and its innovative approaches provide inspiration on taking your supply chain risk management to the next level. 

The GRC software BIC offers a wide range of possibilities to modernize your supply chain risk management. Simply contact us to learn how your company can get started.

If you have any questions about the BME Logistics Survey 2020, please contact us.