How can I respond to the following peer post Good Evening Everyone, This week's discussion is to explain the 6 types of risks to a global supply chain and provide an example of how it is being impacted today in 2022 There are two categories of global supply chain risks internal and external Internal Risks Process risk relates to disruption or interference to key business processes that enables the business to operate for example if a retail store has a POS system that fails it would prevent orders being placed and profit loss is inevitable Control Risks are when a procedure or a system process is in place and returns incorrect results, there could be a calculation error and more products could be ordered than needed causing an increase in inventory, potential dating issues if the items are perishable which lead to shrink Mitigation Risks This is a way to limit risk by having a contingency plan in the event a process or procedure fails External Risks Demand Risk are potential or actual disturbances to the flow of product, information or cash that began in one company and impact other companies or customers which is the downstream in the supply chain For example, during 2020 when the toilet paper demand grew 112 over the previous year Georgia Pacific estimated that people would use 40 more toilet paper than usual because they were spending all their time at home during the pandemic causing the largest toilet paper shortage in history (Moore, A) Supply Risk is the upstream equivalent to the demand risk Environmental risks are external uncontrollable events that impact the company directly or through its suppliers or customers upstream or downstream In example of this is the Russian and Ukraine Conflict there are numerous companies that manufacture goods in Russia and because of the war halted all production until there is resolution This caused many companies to pull items from the shelves Unilever sent out notifications to its customers notify them of limited quantities on 15 items (letter attached)

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Posted on May 19, 2024

How can I respond to the following peer post? Good Evening Everyone, This week's discussion is to explain the 6 types of risks to a

How can I respond to the following peer post?

Good Evening Everyone,

This week's discussion is to explain the 6 types of risks to a global supply chain and provide an example of how it is being impacted today in 2022. There are two categories of global supply chain risks internal and external.

Internal Risks:

Process risk relates to disruption or interference to key business processes that enables the business to operate for example if a retail store has a POS system that fails it would prevent orders being placed and profit loss is inevitable.
Control Risks are when a procedure or a system process is in place and returns incorrect results, there could be a calculation error and more products could be ordered than needed causing an increase in inventory, potential dating issues if the items are perishable which lead to shrink.
Mitigation Risks: This is a way to limit risk by having a contingency plan in the event a process or procedure fails.

External Risks:

Demand Risk are potential or actual disturbances to the flow of product, information or cash that began in one company and impact other companies or customers - which is the downstream in the supply chain. For example, during 2020 when the toilet paper demand grew 112% over the previous year. Georgia Pacific estimated that people would use 40% more toilet paper than usual because they were spending all their time at home during the pandemic causing the largest toilet paper shortage in history. (Moore, A)
Supply Risk is the upstream equivalent to the demand risk.
Environmental risks are external uncontrollable events that impact the company directly or through its suppliers or customers - upstream or downstream. In example of this is the Russian and Ukraine Conflict; there are numerous companies that manufacture goods in Russia and because of the war halted all production until there is resolution. This caused many companies to pull items from the shelves. Unilever sent out notifications to its customers notify them of limited quantities on 15 items (letter attached).