A Tool to map and manage supply chain risk Now integral to the MSc Supply Chain Management & Purchasing course at SKEMA Business School
DRK Research has created a framework and process using the NeuraMetrics Methodology to better understand the drivers that create supply disruptions and mitigate the risk more proactively. This framework and process consists of a set of disruption predicators developed through several years of research and experience with global supply chains. The process and framework has been used by Risk Management teams and commodity managers to aid in identifying, predicting and managing risk on a timely basis or to be alerted to possible risk factors that require their attention. Analytical elements of the tool include:
This view takes into account the indicator scores by applying them to potential risk events that would result in a supply chain disruption. The events are assigned a probability of occurrence within a specific supply chain by experts within that supply chain. This probability is multiplied by the risk indicator score for that event. The averages of the results are rolled up to produce the Risk Probability Index (RPI). This is a relative measure used to rank order the suppliers according to the potential of a supply chain disruption.
Risk Distribution Matrix - Correlates Risk Probability to Revenue Impact
The Risk Distribution Matrix is constructed by plotting the Revenue at Risk (Rev Impact) with a supplier or the average Risk Probability Index (RPI) of that supplier. It is used to view all the suppliers within a commodity group placed within a 2 by 2 matrix according to their risk and potential impact on your company. The zones are color coded from Red (high risk) to Green (no Risk). This is a visual sorting mechanism used to help prioritize and focus mitigation actions on the high risk suppliers.
Bar Chart Ranking Report - shows the ranking of each supplier’s Risk scores within a commodity group
The Bar Chart Report is used to show the ranking of each supplier’s Risk scores within a commodity group. Many other reports and views are available with this system.
With sites in Asia, Europe and America this Business School teaches our State of the Art methodology to effectively predict and mitigate supply chain risk
Learn more about SKEMA and this course
Know each supplier’s risk factor and impact on your company
NeuraMetrics Inc., 1183 Blue Heron Lane West, Jacksonville Beach, FL 32250 Phone: 904-246-9733, FAX: 904-246-9733 (please call before sending)
