# | 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Design | Overall Faulty Process Design leading to SC Failure (e.g. Insufficient or non-existent process documentation, outdated processes) |
|
Process risks |
12 | Change of Market Characteristics |
|
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 |
|
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 |