Browse Definitions:
Definition

supply chain risk management (SCRM)

This definition is part of our Essential Guide: The essential guide to supply chain management best practices
Contributor(s): Matthew Haughn

Supply chain risk management (SCRM) is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to supply chain continuity and profitability.

Threats to the supply chain include cost volatility, material shortages, supplier financial issues and failures and natural and manmade disasters. SCRM strategies and software help an organization foresee potential issues and adapt to both those risks and unforeseeable supply chain disruptions as quickly and efficiently as possible.

Jason Busch and Sherry Gordon of Spend Matters ( a global content network dedicated to procurement and supply chain issues) suggest the following best practices for supply chain risk management:

  1. Automate processes involved in supplier risk management (SRM) to collect, analyze and manage supplier information.
  2. Include supplier performance information in your analysis for insight into potential financial issues.
  3. Identify red flags that may indicate problems and use technology to automate their early detection.
  4. Integrate SCRM platforms with procurement and supply chain management (SCM)  software systems including software for spend visibility, e-sourcing, purchase-to-pay, contract management and compliance.
  5. Provide dashboards that track and report on supply risk metrics to give the executive team access to real-time observations into risk factors.

SCRM  may require collaboration and coordination among an organization’s sales, marketing, production, development, procurement,  finance and IT departments.

This was last updated in June 2016

Continue Reading About supply chain risk management (SCRM)

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

SearchSecurity

  • black hat

    Black hat refers to a hacker who breaks into a computer system or network with malicious intent.

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

SearchHealthIT

  • population health management (PHM)

    Population health management (PHM) is a discipline within the healthcare industry that studies and facilitates care delivery ...

  • ICD-10-PCS

    The International Classification of Diseases, 10th Revision, Procedure Coding System (ICD-10-PCS) is a U.S. cataloging system for...

  • U.S. National Library of Medicine (NLM)

    The U.S. National Library of Medicine (NLM) is the largest biomedical library in the world.

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • open source storage

    Open source storage is data storage software developed in a public, collaborative manner that permits the free use, distribution ...

  • CompactFlash card (CF card)

    A CompactFlash card (CF card) is a memory card format developed by SanDisk in 1994 that uses flash memory technology to store ...

  • email archiving

    Email archiving (also spelled e-mail archiving) is a systematic approach to saving and protecting the data contained in email ...

SearchSolidStateStorage

  • RRAM or ReRAM (resistive RAM)

    RRAM or ReRAM (resistive random access memory) is a form of nonvolatile storage that operates by changing the resistance of a ...

  • JEDEC

    JEDEC is a global industry group that develops open standards for microelectronics.

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification written for internally mounted storage...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close