Role of Risk Managers in the Supply Chain
Over the years, it has been proved beyond doubt that lean manufacturing and global outsourcing can generate significant cost-savings for companies. Now it is being acknowledged that lean manufacturing and global outsourcing can also expose the companies to a greater risk of supply chain disruption. Hence, risk management becomes very important for the supply chain of the companies.
The old perception says that the responsibility for managing supply chain risk should go to the purchasing department, as they are the experts in supply chain processes. However, another point is coming into fore, which says that factory managers should be responsible for property and casualty risk. They should have responsibility for helping to prevent risk exposures. Ultimately, the responsibility should be held with the risk managers. The purchasing department manages the supply chain from suppliers to the company. However, it does not cover the most important area that goes from the company to the customers. Only the risk management department has a broad view to address risks from one end of the supply chain to the other.
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