Want more information about each of these steps? Make sure to check out our whitepaper on making the case for supply chain risk management, which details each step and includes a brainstorming template to get the juices flowing.
Nevertheless, to bring the topic of supply chain risk management to the forefront of your organization, it may be necessary to present a compelling business case as to why you need it.
So how do you do it? We recommend these 5 steps.
Most executives within procurement and supply chain management understand that supply chain risk is an important issue. The topic has moved up the agenda in recent years, and many firms have made investments to support their activities.
1. Explain the supply chain risk facing your organization.
The goal of this step is to make sure that stakeholders understand exactly what supply chain risk is. This involves asking some key questions to highlight where risk lies, and can also involve bringing in past examples of risk incidents.
2. Explain what supply chain risk management should look like.
The goal of this step is to describe the promised land of supply chain risk understanding: up-to-date market knowledge, rapid information and alerts and planned mitigation/preventive actions—all of which will be in place after the investment.
3. Explain the implications and the cost of the supply chain risk facing your organization.
The goal of this step is to make sure that stakeholders understand the need for supply chain risk management. This is when you create the burning platform that justifies the investment.
4. Explain the plan: how to achieve the supply chain risk management vision.
The goal of this step is to describe the proposed solution (presumably a technology solution) and what is required to establish it (in other words, a high-level adoption plan).
5. Explain the costs and benefits.
The goal of this step is to explain the investment and the return on investment, with financial and non-financial costs and benefits explained, including the plan for tracking those benefits.