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
  • Network as a Service (NaaS)

    Network as a service, or NaaS, is a business model for delivering enterprise WAN services virtually on a subscription basis.

  • network configuration management (NCM)

    Network configuration management is the process of organizing and maintaining information about all of the components in a ...

  • presentation layer

    The presentation layer resides at Layer 6 of the Open Systems Interconnection (OSI) communications model and ensures that ...

Security
  • zero-day (computer)

    A zero-day is a security flaw in software, hardware or firmware that is unknown to the party or parties responsible for patching ...

  • backdoor (computing)

    A backdoor attack is a means to access a computer system or encrypted data that bypasses the system's customary security ...

  • Heartbleed

    Heartbleed was a vulnerability in some implementations of OpenSSL, an open source cryptographic library.

CIO
HRSoftware
  • team collaboration

    Team collaboration is a communication and project management approach that emphasizes teamwork, innovative thinking and equal ...

  • employee self-service (ESS)

    Employee self-service (ESS) is a widely used human resources technology that enables employees to perform many job-related ...

  • learning experience platform (LXP)

    A learning experience platform (LXP) is an AI-driven peer learning experience platform delivered using software as a service (...

Customer Experience
  • social media influence

    Social media influence is a marketing term that describes an individual's ability to affect other people's thinking in a social ...

  • headless commerce (headless e-commerce)

    Headless commerce, also called headless e-commerce, is a platform architecture that decouples the front end of an e-commerce ...

  • chief customer officer (CCO)

    A chief customer officer, or customer experience officer, is responsible for customer research, communicating with company ...

Close