How We Manage Supply Chain Risks

How We Manage Supply Chain Risks

In today’s interconnected global marketplace, supply chains have become increasingly complex and vulnerable to various risks. From natural disasters and geopolitical issues to economic disruptions and cyber threats, businesses face a myriad of challenges that can disrupt the flow of goods and services.

When you invest in a professional logistics company, these risks are taken out of your hands and managed instead by us. At VLT Logistics, we make it our priority to protect your business through identification, assessment, and mitigation of supply chain risks and transparency with you is key.

But how do we ensure we’ve built a resilient, robust and secure supply chain?

1. Synchronised systems

The use of a singular system that is identical across our network provides us with protection against miscommunication across the supply chain. By implementing a reliable method of tracking our fleet and warehouse operations, both internal and third party provided, we can keep track of performance and external factors to reduce the risk of delay.

When companies utilise multiple systems, communication can easily break down, and information can become lost, as well as take additional time to locate, especially with a large amount of data at our disposal.

VLT Logistics recently upgraded our internal performance system to Delta WMS which not only supports our continued growth and commitment to our customers, but it includes integrated RF scanning that allows ourselves and customers to track orders at all times of the day.

This single networked system manages all of our warehouse units, creating a cohesive image of our supply chain and reducing the risk of lost items or interference.

2. Identifying critical risks

It is important that we keep on top of critical risks that could impact operations, from minor fluctuations to issues that could significantly impact operations.

Such risks include:

  • Natural disasters (e.g. earthquakes and hurricanes)
  • Geopolitical instability
  • Supplier bankruptcy
  • Demand fluctuations
  • Quality issues

Identifying critical risks comes through varying strategies such as conducting risk workshops or engaging with key stakeholders to gain diverse insights into potential risks, assessments and performance evaluations to identify areas for improvement.

3. Improving visibility

We aim to be transparent about operations at every stage of supply, to give you advanced insights into our supply chain whilst mitigating risk. By improving visibility, we aim to build stable relationships with our customers which reduces the likelihood of your business incurring surprise costs by needing to locate a new supplier.

Improved visibility across our supply chain can can also:

  • Predict and avoid disruptions
  • Increase the speed of operations and delivery
  • Improve customer satisfaction by meeting expectations
  • Create a more agile and flexible chain
  • Use data to drive results leading to greater supply chain success

4. Tracking environmental risk

As a logistics company, there’s no way that we can control the environment, but by planning for geo-physical and extreme weather events, we can prevent risk to our supply chain, thus protecting your goods in transit.

We use software that allows us to identify vulnerable areas on our supply chain and find ways to avoid these areas, or strengthen our approach.

Our commitment to green logistics also reduces our risk to the environment across the supply chain, from warehousing to delivery. The transportation of heavy goods is one of the highest polluting industries across the globe, but we have worked tirelessly to ensure our impact on the planet is low, and getting lower as our business grows.

5. Committing to top of the line security

If online security is flimsy, your whole supply chain could be at risk.

As a logistics company, we have access to sensitive data regarding your business and your customers and we take this responsibility very seriously. Supply chains are known as high priority targets for hackers which means we need to be on top of our game when it comes to protecting your business.

To improve security across our supply chain, it is essential to:

  • Combine strong physical security at access points with online security that manages inventory
  • Conduct regular loss prevention audits
  • Increase employee awareness of cybersecurity
  • Secure internal systems using SSL certificate security and robust encryption
  • Use web security measures including firewalls and anti-virus software
  • Ensure tight connections with customers to avoid third party cyber threats
  • Use and internal IT department to monitor and update cybersecurity measures
  • Conduct regular audits to ensure our systems cannot be penetrated by sophisticated hacking methods

6. Utilising contingency plans

As well as identifying critical risks, we need to implement contingency plans to mitigate these risks. The pandemic as well as a changing geo-political climate has exacerbated the importance of controlling supply chains in a crisis with a detailed emergency response plan.

By creating plans that forecast for every eventuality, we can respond swiftly to economic, political and geographic risks to our supply chain and protect the fluidity of your business in the process.

7. The PPRR method

The PPRR risk management model is a standard framework used to manage supply chain risk.

Prevent: Prevent pertains to any precautionary action taken to predicate emergency i.e. risk assessment, identification of hazards or measures taken to avoid critical situations.

Prepare: Preparedness refers to actions taken that are available in case response to risk is required. This predicts emergency situations and provides instructions on response and recovery in such circumstances.

Response: As it implies, response is any action taken to minimise damage immediately following the fallout of an emergency. For example, assistance provided to individuals or a community. This phase is complete once the immediate danger has passed, the property has been protected and the area is deemed safe.

Recover: Recovery is the stage at which anyone impacted by the emergency is assisted in returning back to normal.

Supply Chain Risks

Managing supply chain risks is an ongoing process that requires proactive planning, continuous assessment, and collaboration with key stakeholders. By mapping our supply chain, identifying critical risks, and implementing appropriate mitigation strategies, we at VLT Logistics can ensure that your goods and data are protected at every stage of the supply chain. When you put your trust in us, we follow through.