Browse Definitions :
Definition

supply chain risk management (SCRM)

Supply chain risk management (SCRM) is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to supply chain continuity and profitability.

Threats to the supply chain include cost volatility, material shortages, supplier financial issues and failures and natural and manmade disasters. SCRM strategies and software help an organization foresee potential issues and adapt to both those risks and unforeseeable supply chain disruptions as quickly and efficiently as possible.

Jason Busch and Sherry Gordon of Spend Matters ( a global content network dedicated to procurement and supply chain issues) suggest the following best practices for supply chain risk management:

  1. Automate processes involved in supplier risk management (SRM) to collect, analyze and manage supplier information.
  2. Include supplier performance information in your analysis for insight into potential financial issues.
  3. Identify red flags that may indicate problems and use technology to automate their early detection.
  4. Integrate SCRM platforms with procurement and supply chain management (SCM)  software systems including software for spend visibility, e-sourcing, purchase-to-pay, contract management and compliance.
  5. Provide dashboards that track and report on supply risk metrics to give the executive team access to real-time observations into risk factors.

SCRM  may require collaboration and coordination among an organization’s sales, marketing, production, development, procurement,  finance and IT departments.

This was last updated in June 2016

Continue Reading About supply chain risk management (SCRM)

Networking
  • CSU/DSU (Channel Service Unit/Data Service Unit)

    A CSU/DSU (Channel Service Unit/Data Service Unit) is a hardware device about the size of a modem. It converts a digital data ...

  • data streaming

    Data streaming is the continuous transfer of data from one or more sources at a steady, high speed for processing into specific ...

  • secure access service edge (SASE)

    Secure access service edge, also known as SASE and pronounced sassy, is a cloud architecture model that bundles network and ...

Security
  • application blacklisting (application blocklisting)

    Application blacklisting --increasingly called application blocklisting -- is a network or computer administration practice used ...

  • juice jacking

    Juice jacking is a security exploit in which an infected USB charging station is used to compromise devices that connect to it.

  • hypervisor security

    Hypervisor security is the process of ensuring the hypervisor -- the software that enables virtualization -- is secure throughout...

CIO
HRSoftware
  • recruitment process outsourcing (RPO)

    Recruitment process outsourcing (RPO) is when an employer turns the responsibility of finding potential job candidates over to a ...

  • human resources (HR) generalist

    A human resources generalist is an HR professional who handles the daily responsibilities of talent management, employee ...

  • employee lifecycle

    The employee lifecycle is a human resources model that identifies the different stages a worker advances through in an ...

Customer Experience
  • Adobe Experience Platform

    Adobe Experience Platform is a suite of customer experience management (CXM) solutions from Adobe.

  • virtual assistant (AI assistant)

    A virtual assistant, also called an AI assistant or digital assistant, is an application program that understands natural ...

  • inbound marketing

    Inbound marketing is a strategy that focuses on attracting customers, or leads, via company-created internet content, thereby ...

Close