Risk Management in Chain Supply - Essay Sample

Paper Type:  Essay
Pages:  4
Wordcount:  921 Words
Date:  2022-12-05


Business operations require a clear channel which the process involved follow before they reach the market for the potential buyers and customers. A broad range of activities is therefore required to plan, control and execute a product's flow which starts during the product acquisition of the raw materials and all the way to production through distribution to the final customer. The flow of these activities is referred to as supply chain management. The processes are conducted in the most streamlined and cost-effective way possible in order to ensure that the business maximizes on its capital margin.

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The processes are, however, not very smooth as sometimes they are faced with both internal and external factors which may derail and delay the process. If not well taken care of, the delaying processes may lead to losses and hence making the business to fail to achieve its full potential. It is therefore very critical to ensure proper measures in chain management to ensure that the chain management process is carried out without any hitch. A good business has to take care of its human resource management who will eventually ensure that workable and cost-effective methods are adhered to. The employees must be experienced in handling the inventory turnovers and have knowledge in market research to enable them to acquire new markets for their end products for faster inventory turnover (Sodhi & Tang 2012).

An organization must have an elaborate risk management plan to ensure the smooth flow of production of goods from the acquisition of the raw materials to their distribution stage in the market. An organization thus requires an elaborate supply chain security to check on the supply chain management throughout the process to prevent and seal all the possible loopholes which may be experienced during the process. The supply chain security must be very secure, resilient and well managed to serve the interests of all. The supply chain security thus covers the following key areas; transportation of goods and logistics systems.

Risk Security in Transport

Transportation of goods proves to be a very difficult task due to the impending dangers and costs which are involved. Physical transportation of goods from the site of production to the market is quite challenging as most of the times a group of terrorist and thieves target the cargos on transit and hence posing security challenges to the chain supply. The security risks which are involved include;


Most thieves target goods on transit as these goods are less secured to the fact that only some few people are physically present during the transit. It is, however, important for organizations to come up with various ways of averting the vice. Some of the best ways an organization should use to protect their transit goods against theft include using modern ways of transiting goods from one point to another. Modern ways should include air transportation to reduce physical confrontation. Similarly, an organization should ensure enough security for all the cargoes as they are moved from one place to another (Wu & Blackhurst, 2009).

Apart from physical theft, some employees are very notorious and can end up stealing from the point of raw material acquisition as well as during production. An organization should come up with stringent ways of taming such employees and improving the security features of their goods workplaces to help prevent and totally end the vice.

Terrorism and Piracy

The wake of the 21st century came up with much terrorism activities which are initiated with the most radicalized individuals due to a number of factors. The world population has tremendously gone high with many people remaining unemployed and hence making them seek different ways to survive. One of the survival strategies they find within reach is to engage in terrorist activities. They, therefore, target mainly goods on transit which will eventually make them make more cash. Business organizations should thus come up with measures to ensure they tame terrorism especially for business organizations which operate globally (Handfield & McCormack, 2007)

Risk Security in Logistic Systems

Much security in chain supply management is required during the logistic procedures which involve storage and shipment of goods. It is at this level where a lot of losses are incurred by businesses as a result of laxity and insecure procedures. Organizations should come up with more advanced methods of cargo handling especially in stores and during their shipments to avoid unnecessary losses which are created by negligence and untrustworthy employees whose main agenda is to enrich themselves. Business organizations should, therefore, invest more in modern technology to help them in handling goods during production, storage, and distribution with enhanced security (Waters, 2011).


Chain supply management is one of the longest and most stressful processes in the livelihood of a business organization. It should, therefore, be handled with much care to avoid losses which may make the business to shut. An elaborate means should be adopted to solemnly handle all the required stages of the product cycle to avoid the loopholes which may eventually lead to the unproductivity of a business.


Handfield, R., & McCormack, K. P. (2007). Supply Chain Risk Management: Minimizing Disruptions in Global Sourcing. Boca Raton, FL: CRC Press.

Sodhi, M. S., & Tang, C. S. (2012). Managing Supply Chain Risk. Berlin, Germany: Springer Science & Business Media.Waters, D. (2011). Supply Chain Risk Management: Vulnerability and Resilience in Logistics. London, England: Kogan Page Publishers.

Wu, T., & Blackhurst, J. V. (2009). Managing Supply Chain Risk and Vulnerability: Tools and Methods for Supply Chain Decision Makers. Berlin, Germany: Springer Science & Business Media.

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Risk Management in Chain Supply - Essay Sample . (2022, Dec 05). Retrieved from https://proessays.net/essays/risk-management-in-chain-supply-essay-sample

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