Ever since technological advancement, it has been important to incorporate it into the supply chain. After all, the business will reduce the risks and increase its reputation immensely.
As per a Deloitte report, over 85 percent of the global market leaders have experienced the disruption of the retail supply chain operations without proper software. Well, retail businesses are in situations where they must upgrade their supply chain techniques with proper software and sufficient planning.
In this manner, you can ensure proper supplier risk management. Well, there are many more strategies that can be applied; you can read on and find out about them.
Use the PPRR risk management model:
The PPRR risk management model is popular and used a lot in the business world. But what does PPRR stand for? It stands for prevention, preparedness, response, and recovery.
This model can save time and money in business and respond to any emergencies. But what exactly is PPRR? In case of any incidents, you can use the “P” of the model (prevention) to mitigate any risks in the business by taking precautionary measures.
When you have identified the risks, the other “P” of the model (preparedness) is used. In the preparedness stage, the business has to develop a plan to solve the issues or emergencies.
When it comes to the “R” of the model (response), you need to respond to emergencies by executing the developed plan. Once the plan is executed, it is time to use the other “R” of the model (recovery). In the recovery stage, your business begins running normally and swiftly.
Track the freight metrics:
A freight carrier can transport goods in bulk from one place to another via ship, train, aircraft, or truck. It is vital to partner to join hands with a freight carrier company that can help you deliver immediate and consistent results in your retail business.
You might search for many companies, but not every carrier company can deliver such results. So, it means that you must evaluate their metrics. You can begin by searching for new freight carriers and evaluating their freight metrics.
Your current freight carrier company must also get its metrics analyzed and evaluated. But what must be evaluated?
You can check the number of days or the time taken for the shipment to leave the facility and reach the customers. How many stops did the freight carrier take? Did they take the best route possible for shipment or delivery? Was everything on schedule?
Well, these are a few questions that must be asked by you and your retail business. In case you are unsure about calculating the freight metrics, you can take the help of the supplier risk management services.
Improve the visibility of the supplier:
There might be a time when your supplier can have some financial issues and go bust. It can lead to disruption of your business, and you might not be able to deliver the goods on time to the customers.
Hence, it is vital to thoroughly check the supplier's financial stability. It can help reduce the risks and ensure proper supplier risk management. So, how exactly can you check their financial stability?
Many credit-rating agencies provide predictive reporting on their finances on hundreds or thousands of suppliers. You can take the help of these agencies and gain a reliable supply chain partner.
Monitor the risk consistently:
If you want to protect the operations of your business, you must monitor the risk consistently. Although many companies assume that planning and management are more than enough to get going, it doesn’t end there.
No matter how you manage, you must be on the lookout for risks in the retail business and take the necessary action.