Describe the specific actions or steps that need to be undertaken to mitigate against the risks of disruptions within the entire supply chain.
RISK MANAGEMENT IN PURCHASING/PROCUREMENT
CASE STUDY
A survey by Capgemini Research Institute found two-thirds (66%) of retail and consumer product organizations were changing their supply chain strategy following disruptions and shifts towards online shopping. Covid-19 was seen to be “a wake-up call” with over eight in 10 retail and consumer product organizations facing disruptions, and only 25% of retailers believing they had the agility needed to support “evolving business needs”. Over the years, disruptions have largely been caused by the Covid-19 that resulted into closure of borders. This has been exacerbated by the Russian Invasion of Ukraine that started in February 2022. More challenges exist ahead with the current civil war in Sudan. These challenges expose retail and merchandise operations to several challenges, namely;
- Stock outs
- Delayed supplies
- Inflation
- Fuel prices continue to shoot up.
Required;
Question Two
- Examine the impact of supply disruptions on the financial and operational performance of retail and consumer product organizations.
- Describe the specific actions or steps that need to be undertaken to mitigate against the risks of disruptions within the entire supply chain.
- Analyze the implications of an increased occurrence of risky events on the achievement of procurement outcomes in any organization of your choice
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