PROCUREMENT STRATEGY
“ Risk has always been with us . It ’ s just the nature of it has changed ”
DUNCAN BROCK GROUP DIRECTOR , CIPS
disruption - from floods , hurricanes and other natural disasters - also rises .
“ Then there is geopolitical risk , posed to supply chains by events such as war and social unrest ,” says Duncan Brock , Group Director at the Chartered Institute of Procurement and Supply ( CIPS ).
With 100,000 Russian troops camped on the Ukrainian border , Brock ’ s is a timely observation . Brock adds that for any organisation , financial risk is another significant danger facing firms . “ A supplier ’ s ownership structure , revenue and growth outlook , as well as major product release delays , can signal fundamental issues with operations , and the future risks that company is likely to face ,” he says .
Agreeing with Brock is Jim Bureau , CEO of JAGGAER , a US-based provider of cloudbased business automation technology
“ Bribery and corruption can occur throughout the sourcing and contract management process ,” Bureau says . “ By placing strict controls and guidance in place businesses are less likely to be exposed .”
Brock , meanwhile , reminds us that sometimes a combination of risk factors can gang up to cause chaos .
“ Supply chain disruption can come about through a combination of risks , as was the case with the Suez Canal blockage , where
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