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302 Mid term question answer

Supply Chain risks analysis practice question with answer

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14 views

302 Mid term question answer

Supply Chain risks analysis practice question with answer

Uploaded by

omarfaruk.logistics
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1. What are the external and internal sources of risks in Supply Chain Management?

In Supply Chain Management (SCM), risks can arise from both external and internal sources.
Here's a breakdown of each:

In Supply Chain Management (SCM), risks can arise from both external and internal
sources. Here's a breakdown of each:

External Sources of Risks: These risks originate outside the organization and are often
beyond direct control. Examples include:

➢ Environmental Risks
➢ Economic Risks
➢ Political and Regulatory Risks
➢ Market Risks
➢ Technological Risks
➢ Logistical and Transportation Risks

Internal Sources of Risks: These risks originate within the organization and can often be
mitigated with better management practices. Examples include:

➢ Operational Risks
➢ Financial Risks
➢ Human Resource Risks
➢ Strategic Risks
➢ Compliance and Quality Risks

2. How can you relate innovation and disruption with the supply chain risks?

Innovation and disruption are closely linked to supply chain risks, as they can both mitigate
and introduce new challenges. Here’s how they relate:

To relate innovation and disruption with supply chain risks:

1. Strategic Adoption:
o Conduct cost-benefit analyses before implementing disruptive technologies.
o Gradually integrate innovations to minimize risks.
2. Risk-Responsive Planning:
o Develop agile supply chain strategies that can quickly respond to disruptions.
o Use scenario planning to prepare for both innovation-driven and external risks.
3. Collaboration and Partnerships:
o Partner with tech firms for smooth integration of innovative solutions.
o Collaborate across the supply chain to share insights on emerging risks.
3. Do you think there is a relationship between performance measurement and a firm’s
competitiveness and profitability?

There is a strong relationship between performance measurement, a firm’s competitiveness,


and profitability. Performance measurement provides the tools and data needed to make
informed decisions, improve operational efficiency, and maintain a competitive edge in the
market. Here's how they are interlinked:

1. Performance Measurement as a Driver of Competitiveness

Performance measurement systems allow firms to monitor, evaluate, and improve


processes that directly impact competitiveness:

➢ Aligning Goals with Strategy


➢ Identifying Strengths and Weaknesses
➢ Benchmarking Against Competitors
➢ Fostering Innovation

2. Performance Measurement and Profitability

Measuring performance also directly impacts a firm's bottom line by optimizing resources
and reducing waste:

➢ Cost Control
➢ Revenue Growth
➢ Resource Allocation
➢ Risk Mitigation

3. Competitiveness, Profitability, and Feedback Loops

➢ Competitiveness enhances profitability


➢ Profitability sustains competitiveness
4. How should performance measures be viewed from a supply chain perspective?

From a supply chain perspective, performance measures should be viewed holistically,


encompassing all aspects of the supply chain—from procurement to delivery—while focusing
on efficiency, effectiveness, and alignment with business goals. Here's how performance
measures should be approached:

1. Multi-Dimensional Perspective: Performance measures in the supply chain should not be


isolated; they need to consider multiple dimensions to provide a comprehensive view:

➢ Operational Efficiency
➢ Customer-Centric Metrics
➢ Financial Performance
➢ Sustainability and Risk Management

2. Strategic Alignment: Performance measures should align with the overall business
strategy and the specific goals of the supply chain:

➢ Balancing Cost and Service


➢ Supporting Long-Term Goals

3. End-to-End Integration: Supply chain performance measures should cover the entire
value chain and be integrated across all stakeholders:

➢ Internal Integration
➢ External Integration

4. Real-Time and Predictive Insights: Modern supply chains are dynamic, requiring
performance measures that offer both real-time and forward-looking insights:

➢ Real-Time Metrics
➢ Predictive Analytics

5. Balanced Scorecard Approach: Adopt a balanced approach that evaluates all critical
areas of supply chain performance:

➢ Financial: Cost, profitability, and ROI.


➢ Customer: Satisfaction, loyalty, and service quality.
➢ Internal Processes: Efficiency, accuracy, and time-to-completion metrics.
➢ Learning and Growth: Innovation, employee training, and adaptability.
5. What risk do managers take when they view their firm’s performance solely in
financial terms?

When managers focus solely on financial performance, they expose their firms to several
significant risks that can undermine long-term sustainability and competitiveness. Here are
the primary risks associated with such a narrow perspective:

1. Neglect of Non-Financial Drivers of Performance

➢ Operational Inefficiencies
➢ Customer Dissatisfaction

2 Short-Term Decision-Making

➢ Underinvestment in Innovation.
➢ Neglecting Talent Development.

3. Failure to Address Risks

➢ Supply Chain Vulnerabilities


➢ Regulatory Non-Compliance

4. Misaligned Strategic Goals

➢ Market Share Erosion


➢ Sustainability Risks

5. Lack of Stakeholder Perspective

➢ Employee Dissatisfaction
➢ Customer Backlash

6. Incomplete Performance Measurement

➢ Customer Metrics
➢ Operational Metrics
➢ ESG Metrics
6. How do world-class performance measures differ from, say, financial performance
measures?

World-class performance measures differ from financial performance measures


primarily in their scope, focus, and time horizon. Here's a breakdown of the key differences:

1. Scope and Focus

➢ Financial Performance Measures


➢ World-Class Performance Measures

2. Short-Term vs. Long-Term

➢ Financial Performance Measures


➢ World-Class Performance Measures

3. Stakeholder Consideration

➢ Financial Performance Measures


➢ World-Class Performance Measures

4. Operational and Strategic Insights

➢ Financial Performance Measures


➢ World-Class Performance Measures

7. How should a firm extend their performance measures to include other supply chain
members?

To extend performance measures to include other supply chain, a firm should take a
collaborative approach that aligns the goals and activities of all stakeholders across the supply
chain. Here are key steps to achieve this:

1. Align Performance Metrics Across the Supply Chain.


2. Use Collaborative Key Performance Indicators (KPIs).
3. Implement Technology for Real-Time Data Sharing.
4. Foster Open Communication and Transparency.
5. Incentivize Performance Improvements.
6. Extend Risk Management and Sustainability Metrics.
7. Monitor and Address Bottlenecks.

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