Risk assessment: essential from the beginning to the end of the SC.
The supply chain must be perfectly geared all its links to function as it should. They have to take care of all aspects and the whole process.
One of the key factors that affects it today is risk assessment. Ignore this section in the supply chain can lead to serious problems. Much more prominent in a process in which compliance with deadlines and time is so vital. One problem undetected or poorly valued at any stage or agents of the supply chain involves waste of time, increased costs and even falling into situations of illegality.
The importance of risk assessment
In any chain, there are strong and others weak links, so in the supply chain as well. In this case, it speaks more of those parts where the risks are higher or less controlled. It is in these phases of the chain where more emphasis should be.
Risk assessment is not a matter to be resolved with a previous study, it should be updated and made regular checks to ensure that the measures put in place are met, change or improve them if necessary and observe new problems. This work extends to the entire chain.
Of course, in the supply chain they act different actors and control all takes effort. But to meet quality standards, the entire supply chain must comply with the risk assessment. There are few companies that handle the external audits its suppliers to ensure that appropriate measures are met.
To make the risk assessment of the entire chain, the company working with suppliers or other companies should ensure that they comply with certain elements such as:
- Have developed a plan of Occupational Health and Safety, of course.
- Having a quality certificate or a hand on it. Or at least future plans to implement it.
- Means existence of internal control and regularity.
- Accreditation or implementation of an Environmental Management System.
- Plans safety training of personnel.
- Work conditions of the agreements.
This control of the companies with which you work is not something to be put aside, because it is one of the practices that ensures that risk assessment is met from the beginning to the end of the supply chain. Over recent years, new factors have increased security risks have emerged:
- Boosting globalization without proper planning.
- Centralized distribution in some cases leading to agglutinate goods.
- Relying on outsourcing suppliers audits without them.
- Lack of visibility and control procedures.
- The need for everything to be done fast.
- Reducing costs throughout the chain.
All this requirement to suppliers is part of the corporate social responsibility of the company. Because what is at stake is, and not only the efficiency of the chain, but also the reputation and name. Therefore, suppliers are required in recent years, respect for human rights, environmental care or ethical commitments. Even some companies have set up specific codes of conduct for suppliers.
Of particular relevance is this control because globalization work extends the areas of many countries, some of which have more lax legislation on risk assessment and situation of workers.