Risk management is a discipline that identifies, evaluates and prioritizes the risks related to an organization’s activities, no matter the nature or origin. It deals with these risks in a coordinated and cost-effective manner to minimize and control the probability of feared events, and reduce the potential impact.
The crisis management of the supply chain requires the use of strategies to identify, qualify, quantify and proactively manage its inherent risks.
Choosing the right suppliers has become more strategic than ever before, as it must consider their reliability, the extent of their network and the quality of their subcontractors. This choice is not just a matter of the cost of logistics services.
Sound risk management must take into account such aspects as the choice of a mode of transport, carriers and proposed routes, packaging and protection of goods to ship, compliance of security standards, insurance coverage and customs compliance. This management approach helps validate the supply chain and ensure its security, and establish a business continuity plan to minimize the risk of interruption that could not only prove costly, but also affect client relations.
Contact Cargolution for advice on how to manage your risks and optimize your decision-making.