Mitigation Strategies for Supply Chain Risks
Expert-defined terms from the Professional Certificate in Risk Management in Supply Chains course at London School of Business and Administration. Free to read, free to share, paired with a professional course.
Absolute Advantage refers to a company or country having a higher… #
Absolute Advantage refers to a company or country having a higher output or productivity than others in the production of a good or service, which can be a key consideration in supply chain risk management.
Acceptable Risk is the level of risk that an organization is willing to <… #
Acceptable Risk is the level of risk that an organization is willing to accept in order to achieve its objectives, and it is a critical concept in mitigation strategies for supply chain risks.
Active Risk Management involves proactive measures to identify, assess, a… #
Active Risk Management involves proactive measures to identify, assess, and mitigate potential risks to the supply chain, such as implementing contingency plans and monitoring key performance indicators.
Advanced Shipping Notice is an electronic notification sent by a supplier … #
Advanced Shipping Notice is an electronic notification sent by a supplier to a customer prior to the shipment of goods, providing detailed information about the shipment, which can help mitigate risks associated with inventory management.
Agile Supply Chain is a flexible and responsive supply chain that… #
Agile Supply Chain is a flexible and responsive supply chain that can quickly adapt to changes in demand or supply, which is critical in today's fast-paced and volatile business environment.
Alternative Scenarios are hypothetical scenarios that are developed to an… #
Alternative Scenarios are hypothetical scenarios that are developed to anticipate and prepare for potential disruptions to the supply chain, such as natural disasters or economic downturns.
Analytical Hierarchy Process is a decision #
making tool used to evaluate and prioritize options for mitigating supply chain risks, which can help organizations make informed decisions.
Asset #
Based Risk is the risk associated with the ownership and operation of physical assets, such as equipment and facilities, which can have a significant impact on supply chain operations.
Asset Protection involves measures taken to protect physical assets from… #
Asset Protection involves measures taken to protect physical assets from damage or loss, such as implementing security protocols and conducting regular maintenance.
Assurance is a guarantee or promise that a product or service will… #
Assurance is a guarantee or promise that a product or service will meet certain standards or requirements, which can help mitigate risks associated with quality and reliability.
Autonomous Supply Chain is a self #
managing supply chain that uses artificial intelligence and other technologies to optimize operations and decision-making, which can help reduce the risk of human error.
Availability is the degree to which a product or service is accessible… #
Availability is the degree to which a product or service is accessible and usable when needed, which is a critical consideration in supply chain risk management.
Backward Integration is a strategy in which a company acquires or… #
Backward Integration is a strategy in which a company acquires or partners with a supplier to gain greater control over the supply chain, which can help mitigate risks associated with supplier insolvency.
Barriers to Entry are obstacles or hurdles that make it difficult… #
Barriers to Entry are obstacles or hurdles that make it difficult for new companies to enter a market or industry, which can help reduce the risk of competition from new entrants.
Benchmarking involves comparing the performance of a supply chain with th… #
Benchmarking involves comparing the performance of a supply chain with that of other companies or industries to identify areas for improvement and mitigate risks associated with inefficiency.
Bid Analysis is the evaluation of bids or proposals from suppliers… #
Bid Analysis is the evaluation of bids or proposals from suppliers to determine the best option for a company, which can help mitigate risks associated with supplier selection.
Black Swan Event is a rare and unpredictable event that has a significant… #
Black Swan Event is a rare and unpredictable event that has a significant impact on a supply chain, such as a natural disaster or global economic crisis.
Blockchain is a distributed ledger technology that enables secure … #
Blockchain is a distributed ledger technology that enables secure and transparent tracking and verification of transactions, which can help mitigate risks associated with counterfeiting and fraud.
Brand Protection involves measures taken to protect a company's brand<… #
Brand Protection involves measures taken to protect a company's brand and reputation from damage or loss, such as implementing quality control measures and conducting regular audits.
Business Continuity Planning involves developing plans and procedures<… #
Business Continuity Planning involves developing plans and procedures to ensure that a company can continue to operate in the event of a disruption or crisis, which can help mitigate risks associated with business interruption.
Business Impact Analysis is the evaluation of the potential impact of a <… #
Business Impact Analysis is the evaluation of the potential impact of a disruption or crisis on a company's operations and revenue, which can help identify areas for mitigation and improvement.
Capacity Planning involves determining the optimal level of production… #
Capacity Planning involves determining the optimal level of production or capacity to meet demand, which can help mitigate risks associated with overproduction or underproduction.
Carbon Footprint is the amount of greenhouse gas emissions associa… #
Carbon Footprint is the amount of greenhouse gas emissions associated with a product or activity, which can have a significant impact on a company's reputation and compliance with regulations.
Cash #
to-Cash Cycle is the time it takes for a company to sell a product, collect payment, and pay suppliers, which can help mitigate risks associated with cash flow and liquidity.
Category Management involves grouping similar products or services … #
Category Management involves grouping similar products or services into categories to simplify procurement and management, which can help mitigate risks associated with complexity and inefficiency.
Certification is the process of verifying that a product or service</i… #
Certification is the process of verifying that a product or service meets certain standards or requirements, which can help mitigate risks associated with quality and reliability.
Change Management involves planning and implementing changes to a… #
Change Management involves planning and implementing changes to a supply chain, such as process improvements or technology upgrades, which can help mitigate risks associated with disruption and resistance.
Cloud Computing is a model for delivering computing services over… #
Cloud Computing is a model for delivering computing services over the internet, which can help mitigate risks associated with infrastructure and maintenance.
Collaborative Planning is a process in which multiple stakeholders … #
Collaborative Planning is a process in which multiple stakeholders work together to plan and manage a supply chain, which can help mitigate risks associated with communication and coordination.
Commodity Risk is the risk associated with fluctuations in the price or <… #
Commodity Risk is the risk associated with fluctuations in the price or availability of raw materials or commodities, which can have a significant impact on a company's cost structure and profitability.
Component #
Based Risk is the risk associated with the failure or unavailability of a critical component or part, which can have a significant impact on a company's production and delivery capabilities.
Concurrent Engineering is a process in which multiple functions or… #
Concurrent Engineering is a process in which multiple functions or departments work together to design and develop a product, which can help mitigate risks associated with communication and coordination.
Condition #
Based Maintenance is a strategy in which maintenance is performed based on the condition of equipment or assets, rather than on a fixed schedule, which can help mitigate risks associated with downtime and inefficiency.
Conflict Minerals are minerals that are mined in conflict zones or… #
Conflict Minerals are minerals that are mined in conflict zones or areas with poor human rights records, which can have a significant impact on a company's reputation and compliance with regulations.
Consignment Inventory is a type of inventory that is owned by a suppli… #
Consignment Inventory is a type of inventory that is owned by a supplier but stored at a customer location, which can help mitigate risks associated with inventory management and ownership.
Containerization is the process of shipping goods in containers to… #
Containerization is the process of shipping goods in containers to simplify handling and transportation, which can help mitigate risks associated with damage and loss.
Contingency Planning involves developing plans and procedures to r… #
Contingency Planning involves developing plans and procedures to respond to potential disruptions or crises, such as natural disasters or supply chain disruptions.
Continuous Improvement is a philosophy of ongoing improvement and… #
Continuous Improvement is a philosophy of ongoing improvement and refinement of processes and systems, which can help mitigate risks associated with complacency and inefficiency.
Contract Management involves managing and administering contracts… #
Contract Management involves managing and administering contracts with suppliers or partners, which can help mitigate risks associated with non-compliance and disputes.
Controlled Environment is a facility or area that is designed to m… #
Controlled Environment is a facility or area that is designed to maintain a specific environment or condition, such as a clean room or climate-controlled warehouse.
Core Competence is a unique skill or capability that sets a compan… #
Core Competence is a unique skill or capability that sets a company apart from its competitors, which can help mitigate risks associated with differentiation and competitive advantage.
Corporate Social Responsibility is a company 's commitment to social</i… #
Corporate Social Responsibility is a company's commitment to social and environmental responsibility, which can help mitigate risks associated with reputation and compliance with regulations.
Counterfeit Risk is the risk associated with the counterfeiting of… #
Counterfeit Risk is the risk associated with the counterfeiting of products or components, which can have a significant impact on a company's reputation and revenue.
Credit Risk is the risk that a customer or supplier will no… #
Credit Risk is the risk that a customer or supplier will not pay their debts or obligations, which can have a significant impact on a company's cash flow and liquidity.
Crisis Management involves responding to and managing a crisis or… #
Crisis Management involves responding to and managing a crisis or disruption, such as a natural disaster or supply chain disruption.
Critical Path Method is a technique used to identify and manage… #
Critical Path Method is a technique used to identify and manage the critical path of a project or process, which can help mitigate risks associated with delay and inefficiency.
Cross #
Docking is a logistics strategy in which goods are transferred from one vehicle to another without being stored, which can help mitigate risks associated with inventory management and handling.
Customer Relationship Management involves managing and analyzing c… #
Customer Relationship Management involves managing and analyzing customer data and interactions, which can help mitigate risks associated with customer satisfaction and retention.
Customs Clearance is the process of clearing goods through cust… #
Customs Clearance is the process of clearing goods through customs and complying with regulations and tariffs, which can help mitigate risks associated with compliance and delays.
Cycle Counting is a method of counting and verifying invent… #
Cycle Counting is a method of counting and verifying inventory on a regular basis, which can help mitigate risks associated with inventory management and accuracy.
Data Analytics involves analyzing and interpreting data to gain in… #
Data Analytics involves analyzing and interpreting data to gain insights and inform decision-making, which can help mitigate risks associated with information and intelligence.
Demand Planning involves forecasting and managing demand for produ… #
Demand Planning involves forecasting and managing demand for products or services, which can help mitigate risks associated with overproduction or underproduction.
Digital Supply Chain is a supply chain that uses digital technolog… #
Digital Supply Chain is a supply chain that uses digital technologies, such as blockchain and artificial intelligence, to optimize operations and decision-making.
Direct Shipping is a logistics strategy in which goods are shipped dir… #
Direct Shipping is a logistics strategy in which goods are shipped directly from the manufacturer to the customer, which can help mitigate risks associated with inventory management and handling.
Disaster Recovery involves planning and implementing measures to r… #
Disaster Recovery involves planning and implementing measures to recover from a disaster or crisis, such as a natural disaster or cyber attack.
Diversification is a strategy in which a company expands its produ… #
Diversification is a strategy in which a company expands its product or service offerings to reduce dependence on a single market or customer, which can help mitigate risks associated with concentration and vulnerability.
Distribution Network is a system of warehouses , transportation<… #
Distribution Network is a system of warehouses, transportation modes, and delivery methods used to distribute products to customers, which can help mitigate risks associated with logistics and delivery.
Duty is a tax or fee imposed on imported goods, which can h… #
Duty is a tax or fee imposed on imported goods, which can have a significant impact on a company's cost structure and profitability.
Dynamic Pricing involves adjusting prices in real #
time based on market conditions and demand, which can help mitigate risks associated with pricing and revenue.
Economic Order Quantity is a formula used to determine the optimal … #
Economic Order Quantity is a formula used to determine the optimal order quantity for a product, which can help mitigate risks associated with inventory management and cost.
Electronic Data Interchange is a standard for exchanging business… #
Electronic Data Interchange is a standard for exchanging business documents electronically, which can help mitigate risks associated with communication and data exchange.
Emergency Response Plan involves planning and implementing measure… #
Emergency Response Plan involves planning and implementing measures to respond to an emergency or crisis, such as a natural disaster or supply chain disruption.
End #
to-End Visibility is the ability to track and monitor a product or shipment throughout the entire supply chain, which can help mitigate risks associated with loss and theft.
Enterprise Resource Planning is a system used to manage and int… #
Enterprise Resource Planning is a system used to manage and integrate business operations, including supply chain management, finance, and human resources.
Environmental Risk is the risk associated with the environmental i… #
Environmental Risk is the risk associated with the environmental impact of a company's operations, such as pollution or climate change, which can have a significant impact on a company's reputation and compliance with regulations.
Excess Inventory is inventory that exceeds the current or proje… #
Excess Inventory is inventory that exceeds the current or projected demand for a product, which can have a significant impact on a company's cash flow and liquidity.
Export Compliance involves complying with regulations and laws<… #
Export Compliance involves complying with regulations and laws related to the export of goods, which can help mitigate risks associated with compliance and penalties.
Failure Mode and Effects Analysis is a method used to identify and… #
Failure Mode and Effects Analysis is a method used to identify and assess potential failures in a product or process, which can help mitigate risks associated with quality and reliability.
Financial Risk is the risk associated with the financial performan… #
Financial Risk is the risk associated with the financial performance of a company, including credit risk, market risk, and liquidity risk.
Finished Goods Inventory is inventory that is ready for shipment t… #
Finished Goods Inventory is inventory that is ready for shipment to customers, which can help mitigate risks associated with inventory management and delivery.
Firm Fixed Price is a contract in which the seller agrees to provi… #
Firm Fixed Price is a contract in which the seller agrees to provide a product or service at a fixed price, which can help mitigate risks associated with cost and budget.
Flexibility is the ability of a supply chain to adapt to change… #
Flexibility is the ability of a supply chain to adapt to changes in demand or supply, which can help mitigate risks associated with disruption and volatility.
Foreign Trade Zone is a designated area where goods can be impo… #
Foreign Trade Zone is a designated area where goods can be imported and exported without paying duties or taxes, which can help mitigate risks associated with cost and compliance.
Freight Audit is the process of auditing and verifying frei… #
Freight Audit is the process of auditing and verifying freight bills and charges, which can help mitigate risks associated with cost and accuracy.
Full Truckload is a shipment that fills an entire truck , which can… #
Full Truckload is a shipment that fills an entire truck, which can help mitigate risks associated with transportation and logistics.
Global Trade Management involves managing and complying with re… #
Global Trade Management involves managing and complying with regulations and laws related to international trade, which can help mitigate risks associated with compliance and penalties.
Green Supply Chain is a supply chain that is designed to minimize … #
Green Supply Chain is a supply chain that is designed to minimize environmental impact and promote sustainability, which can help mitigate risks associated with reputation and compliance with regulations.
Hedging is a strategy used to manage and mitigate risks ass… #
Hedging is a strategy used to manage and mitigate risks associated with price fluctuations or currency exchange, which can help mitigate risks associated with cost and revenue.
Incoterms are standard terms used to define the responsibilitie… #
Incoterms are standard terms used to define the responsibilities of buyers and sellers in international trade, which can help mitigate risks associated with compliance and communication.
Information Security is the practice of protecting and securing… #
Information Security is the practice of protecting and securing sensitive information and data, which can help mitigate risks associated with cyber attacks and data breaches.
Insourcing is the practice of managing and performing tasks… #
Insourcing is the practice of managing and performing tasks or functions in-house, which can help mitigate risks associated with outsourcing and dependence on third-party providers.
Insurance is a contract in which an insurer agrees to compensat… #
Insurance is a contract in which an insurer agrees to compensate an insured for losses or damages, which can help mitigate risks associated with uncertainty and unpredictability.
Integrated Logistics is the coordination and management of logi… #
Integrated Logistics is the coordination and management of logistics activities, including transportation, warehousing, and inventory management, which can help mitigate risks associated with complexity and inefficiency.
Intellectual Property is a creation of the mind , such as a pate… #
Intellectual Property is a creation of the mind, such as a patent, trademark, or copyright, which can help mitigate risks associated with counterfeiting and piracy.
Intermodal Transportation is the use of multiple modes of transpor… #
Intermodal Transportation is the use of multiple modes of transportation, such as trucks, rail, and ships, to transport goods, which can help mitigate risks associated with logistics and delivery.
International Commercial Terms are standard terms used to define t… #
International Commercial Terms are standard terms used to define the responsibilities of buyers and sellers in international trade, which can help mitigate risks associated with compliance and communication.
Inventory Management involves managing and controlling inventory l… #
Inventory Management involves managing and controlling inventory levels, including ordering, stocking, and shipping, which can help mitigate risks associated with inventory management and cost.
ISO 9001 is a standard for quality management systems, which can h… #
ISO 9001 is a standard for quality management systems, which can help mitigate risks associated with quality and reliability.
Just #
in-Time is a strategy in which goods are produced and delivered just in time to meet customer demand, which can help mitigate risks associated with inventory management and cost.
Kaizen is a philosophy of continuous improvement and refinement… #
Kaizen is a philosophy of continuous improvement and refinement of processes and systems, which can help mitigate risks associated with complacency and inefficiency.
Key Performance Indicator is a metric used to measure and evalu… #
Key Performance Indicator is a metric used to measure and evaluate the performance of a supply chain or process, which can help mitigate risks associated with performance and accountability.
Last Mile Delivery is the final stage of delivery , in which goods… #
Last Mile Delivery is the final stage of delivery, in which goods are transported from a warehouse or distribution center to the customer, which can help mitigate risks associated with logistics and delivery.
Lead Time is the time it takes for a product to be produced and <b… #
Lead Time is the time it takes for a product to be produced and delivered to a customer, which can help mitigate risks associated with delay and inefficiency.
Lean Manufacturing is a philosophy of eliminating waste and max… #
Lean Manufacturing is a philosophy of eliminating waste and maximizing efficiency in production processes, which can help mitigate risks associated with cost and productivity.
Less than Truckload is a shipment that does not fill an entire truck</… #
Less than Truckload is a shipment that does not fill an entire truck, which can help mitigate risks associated with transportation and logistics.
Letter of Credit is a document that guarantees payment to a sel… #
Letter of Credit is a document that guarantees payment to a seller upon presentation of documents that comply with the terms of the letter, which can help mitigate risks associated with payment and credit.
Leverage is the use of debt or other financial instruments… #
Leverage is the use of debt or other financial instruments to amplify returns or increase value, which can help mitigate risks associated with capital and investment.
Life Cycle Assessment is a method used to evaluate the environment… #
Life Cycle Assessment is a method used to evaluate the environmental impact of a product or process throughout its life cycle, which can help mitigate risks associated with environmental sustainability and compliance.
Logistics Service Provider is a company that provides logistics se… #
Logistics Service Provider is a company that provides logistics services, such as transportation, warehousing, and inventory management, which can help mitigate risks associated with logistics and delivery.
Make #
or-Buy Decision is a decision to produce a product or component in-house or to outsource it to a third-party provider, which can help mitigate risks associated with cost and quality.
Manufacturing Execution System is a system used to manage and t… #
Manufacturing Execution System is a system used to manage and track production processes, including quality control and inventory management, which can help mitigate risks associated with quality and productivity.
Market Risk is the risk associated with fluctuations in market pri… #
Market Risk is the risk associated with fluctuations in market prices or demand, which can have a significant impact on a company's revenue and profitability.
Material Requirements Planning is a system used to plan and man… #
Material Requirements Planning is a system used to plan and manage material requirements for production, which can help mitigate risks associated with inventory management and cost.
Maximum Stock Level is the maximum amount of inventory that a comp… #
Maximum Stock Level is the maximum amount of inventory that a company is willing to hold, which can help mitigate risks associated with inventory management and cost.
Minimum Order Quantity is the minimum amount of a product that a suppl… #
Minimum Order Quantity is the minimum amount of a product that a supplier is willing to sell, which can help mitigate risks associated with inventory management and cost.
Mitigation Strategy is a plan or approach used to reduce or… #
Mitigation Strategy is a plan or approach used to reduce or mitigate risks associated with a supply chain or process, which can help mitigate risks associated with uncertainty and unpredictability.
Mixed Integer Linear Programming is a method used to optimize and… #
Mixed Integer Linear Programming is a method used to optimize and solve complex problems, such as supply chain optimization and logistics planning, which can help mitigate risks associated with complexity and inefficiency.
Modular Design is a design approach in which a product or system i… #
Modular Design is a design approach in which a product or system is composed of interchangeable modules or components, which can help mitigate risks associated with customization and flexibility.
Multi #
Echelon Inventory is a system in which inventory is managed and controlled at multiple levels, such as warehouses and retail stores, which can help mitigate risks associated with inventory management and cost.
Nearshoring is a strategy in which a company locates its operat… #
Nearshoring is a strategy in which a company locates its operations or suppliers in a nearby country or region, which can help mitigate risks associated with logistics and delivery.
Network Optimization is the process of optimizing and improving… #
Network Optimization is the process of optimizing and improving the performance of a network, such as a supply chain or logistics network, which can help mitigate risks associated with complexity and inefficiency.
Node is a point or location in a network , such as a ware… #
Node is a point or location in a network, such as a warehouse or distribution center, which can help mitigate risks associated with logistics and delivery.
Offshoring is a strategy in which a company locates its operati… #
Offshoring is a strategy in which a company locates its operations or suppliers in a distant country or region, which can help mitigate risks associated with cost and labor.
On #
Shelf Availability is the percentage of time that a product is available on the shelf and ready for sale, which can help mitigate risks associated with inventory management and revenue.
Operations Research is a discipline that uses mathematical and … #
Operations Research is a discipline that uses mathematical and analytical methods to optimize and improve business processes, which can help mitigate risks associated with complexity and inefficiency.
Order Fulfillment is the process of receiving , processing ,… #
Order Fulfillment is the process of receiving, processing, and shipping customer orders, which can help mitigate risks associated with logistics and delivery.
Organizational Risk is the risk associated with the structure and… #
Organizational Risk is the risk associated with the structure and management of an organization, including governance and compliance, which can have a significant impact on a company's reputation and success.
Outsourcing is the practice of contracting with a third #
party provider to perform a task or function, which can help mitigate risks associated with cost and efficiency.
Packaging is the process of designing and creating packagin… #
Packaging is the process of designing and creating packaging for products, which can help mitigate risks associated with damage and loss.
Partnership is a relationship between two or more companies that w… #
Partnership is a relationship between two or more companies that work together to achieve a common goal, which can help mitigate risks associated with collaboration and communication.
Performance Metrics are measures used to evaluate and assess</b… #
Performance Metrics are measures used to evaluate and assess the performance of a supply chain or process