Supply Chain Risk Management (SCRM), defined in this guideline, can be applied proactively for the protection of all procured products and services; both flying and non-flying through all levels of the supply chain.
The guideline focuses on Quality as a key risk assessment factor taking into account elements from all aspects of the business having a direct link to global quality management. This concept/model is shown in Figure 1.
While traditional "small q" Quality is a key element to be assessed, from a company business point of view, other elements play an important part in minimizing risk. This guideline defines such risk factors for consideration.
SCRM as a business protection tool will be most effective when used to identify, and reduce risks when generating new business with new and existing suppliers. However, the tools and techniques described hereafter can also be applied to evaluate the existing supply chain network and determine the level of control required.
The SCRM can be applied by merging identified risk factors associated with procured products or services and the supplier itself with the target for overall supplier quality risk management (see Section 6).
This guideline is recommended to be cascaded to sub-tier suppliers in the supply chain.