Risks within a network in a supply chain are known to exist, but enterprises rarely take action in advance to understand or address them. The categorization of supply chain risks and their drivers must be considered at the time of planning/re-planning your network followed by the prioritization of risks by estimating their likelihood of occurrence and impact on the supply chain in the risk assessment phase.
Good network design plays a significant role in mitigating supply chain risks. However, every mitigating strategy comes at a price and may increase other risks thus, companies should develop tailored mitigation strategies during network design which results in a good balance between the amounts of risk mitigated and the increase in cost.
Project Argus offers state-of-the-art network design software that:
- Uses mathematical optimization by considering all business constraints in the network.
- Supports rapid “what-if scenarios”.
- Perform risk analysis of the supply chain to arrive at optimal investment decisions.
Many enterprises have implemented our network design software in their supply chain. Having good proactive risk management is key to reducing the likelihood of disruptions to your supply chain and minimizing the impact of unforeseen events. This approach can also help protect your business, ensure continuity in the face of adversity by anticipating potential risks and developing strategies to mitigate them so you can stay ahead of the curve and maintain a competitive edge.
The Author, Dr. Niraj Gupta, is the New Principal Solution Consultant of Project Argus Pte Ltd and is the former official Director of the Institute of Technology and the Director of the Internal Quality Assurance Cell at Shri Ramswaroop Memorial University with 23 years of experience in Academic, Industry, and Research.
He can be contacted via email at niraj.gupta@projectargus.co for further information.