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TUHH

Qries

# Risk Consequences Measures Risk category
11 Faulty Process Design

Overall Faulty Process Design leading to SC Failure (e.g. Insufficient or non-existent process documentation, outdated processes)

  • Implement proper and required documentation for processes
  • Establish a high degree of employee involvement and responsibiltiy
  • Implement control processes that cannot be bypassed to detect faulty, insuffiecient or outdated elements in a process
Process risks
12 Change of Market Characteristics
  • Market Shortages
  • Commodity Price increases
  • Sole source/limited Qualified Sources

Opt to switch to a multi-supplier strategy to become less susceptible to changing market characteristics.

Supply risks
13 Supply Commitment

Having a wrong commitment on the OEM/buyer side can cause having either an unmet buyer demand or growing excess inventories. Especially long term advance orders are a culprint of this.

Implementing a Forecast-Commitment Contract as proposed by Durango-Cohen and Yano (2006) 37

Supply risks
14 Supplier Failure
  • Delivery Failure
  • Quality Problems
  • Discontinuity of Supply

OEMs offering financial support for their suppliers if they are in danger of not meeting quotas and quality.

Supply risks
15 Change in technology or in consumer preference

Changes in technology or in consumer preference significantly undermine a companies demand and accurate estimation of investment.

Collaboration with competitors when making large investments into new technology.

Demand risks