The best way to manage a supply chain disruption is to prepare for it. You should undertake a business impact analysis to prepare your business to address the impacts of supply chain disruption.
The 3V Business Impact Analysis identifies your key business processes, and the activities and resources you need to operate your business. It assesses how these key elements will be affected by supply chain interruptions highlighted in your risk management plan.
The degree of impact on your business will depend on the severity and length of the disruption, but most disruptions will have a financial effect. Disruptions can be internal, such as a breakdown of vital machinery, or external, such as interruptions to the flow of raw materials or parts to your business. The business impact analysis allows you to measure how supply chain disruptions may affect business activities, including financial management.
For example, if vital machinery breaks down and disrupts production, the impacts on various business activities could include:
A business risk management plan involves identifying, assessing and developing strategies to manage risks. It is an essential part of any business plan and 3V Solutions will help you prepare for, and deal with, risk factors associated with an economic downturn.
During an economic downturn, business risk management involves closely monitoring your business's performance, identifying any issues affecting it and putting in place strategies to reduce or address these issues. 3V Solutions provides a complete business risk management assessment that includes all of the SCM components. For more information, email us at us at firstname.lastname@example.org