Prepare for emergencies! The four major risks threatening the supply chain and their countermeasures.

Explaining the risks of the supply chain and BCP measures. Introducing ways to build a robust system to prepare for threats from the environment, geopolitics, economy, and security!

In the era of globalization and uncertainty, supply chain risk management influences a company's competitiveness. Four categories are particularly important: 1. Environmental Risks Natural disasters, climate change, and pandemics can lead to production halts and transportation restrictions. It is essential to establish a Business Continuity Plan (BCP), diversify locations, and secure safety stock in advance. When incidents occur, alternative sourcing, switching transportation methods, and reconstructing demand forecasts are crucial. 2. Geopolitical Risks Wars, economic sanctions, and trade friction hinder logistics and transactions. It is important to conduct country-specific risk analyses and diversify suppliers, and during crises, quickly explore alternative markets and legal responses. 3. Economic Risks Exchange rate fluctuations, rising raw material costs, and economic recessions affect costs and demand. Prepare with currency hedging and long-term contracts, and respond to occurrences by passing on costs and adjusting procurement volumes. 4. Security Risks Cyberattacks and the circulation of counterfeit goods undermine trust. Implementing a zero-trust approach and ensuring traceability are necessary, and during incidents, thorough responses from Computer Security Incident Response Teams (CSIRT) and information sharing are vital. The keywords are "diversification, forecasting, monitoring" + "rapid alternatives, information sharing, legal responses." Now is the time to build a robust and flexible supply chain and strengthen BCP to enhance corporate sustainability and competitiveness.

Purchasing Management System