Supply Risks

Typical project-related risks are supply, market and economic environment, financial, construction and completion, regulatory and political risks30 [11,12], Supply risks mean that there is a probability31 of non-... 

Supply risk factor that might be connected to the depletion of existing gas reservoirs, or with wrong forecast for resources of new findings. 

Donald J. Rendall, Jr., General Counsel/Corp. Sec./VP Robert J. Griffin, VP-Power Supply Risk Mgmt. 

Although the interdependency of supply risks is well-known in chemical production networks, it is difficult to quantify the effects arising from certain sources of uncertainties. This is caused by the complexity of production processes, the interconnectedness of the production network, and the limited capacities of commonly used logistical infrastructures. However, quantitative information is necessary to determine economically reasonable risk management decisions. 

Rare earth elements have an essential role in permanent magnets, lamp phosphors, rechargeable NiMH batteries, catalysts and other applications (see Chap. 5). In 2010, the European Union published the report Critical Raw Materials for the EU , indicating that the rare earths had the highest supply risk of all raw materials, while their economic importance was considered medium (European Union 2010) (Fig. 7.1). 

Fig. 7.1 Supply risk versus economic importance. The rare earths are in the red circle. Modified after the European Union (2010). Used with permission...

Zsidisin, G.A., and Smith, M.E. Managing Supply Risk with Early Supplier Involvement A Case Study and Research Propositions. Journal of Supply Chain Manoigement, 41(4) 44, November 2005. 

Supply chain excellence has evolved. The definition has morphed from the efficient supply chain to a market-driven value network. Today, the concept of a market-driven value network is largely aspirational. It is a new goal. As supply risks and costs have grown, companies realize that a demand-driven approach is not sufficient. The focus needs to be about more than the channel, instead, the supply chain needs to be driven through strong horizontal processes bidirectionally from market to market. Accomplishing the goal requires a redefinition of both buy-side and sell-side processes, and the use of new forms of analytics to sense, shape, and orchestrate bidirectionally market to market. 

Building the right horizontal connectors. How can the organization build strong horizontal processes to sense, translate, and shape demand while sensing and translating supply risk What is the best way to connect research and development (R D) launch plans to horizontal processes How do horizontal processes best support the business strategy Who should lead them Is there a need for a formal commercialization process and turnover ... 

In order to mitigate supply risks, resuscitation of closed mines and exploitation of new mines would be effective in short and long terms, respectively. Studies on replacement materials and materials with decreased rare-earth content are also necessary together with establishing an effective stockpiling... 

However, most of the available metal-based eatalysts for ROP and a-olefin polymerisation suffer from inherent toxicity, low abundance, high price and are listed as endangered elements, which is in contradiction with their application in green and sustainable procedures for polymer synthesis. In line with sustainable catalyst development, titanium is nontoxic (no known biological role), readily accessible and an abundant element (crustal abundance of 4136 ppm with the lowest supply risk searcity factor is about 2.5/8.5) making this element one of the most attraetive metals for use in sustainable polymerisation catalysis. 

Methods applicable for analysing quality of supply risk... 

Characteristics of quality of supply risk The distribution companies are being increasingly subjected to regulatory regimes that explicitly take into accoimt the quality of supply to the consumers (Eurelectric 2005). 

Quality of supply risk + -1- + + -b NPV-analyses, Power system Analysis... 

Zsidisin, G. A., L Ellram, Carter J Cavinato J. 2004. An analysis of Supply Risk Assessment Techniques. International Journal of Physical Distribution and Logistics Management 34 397 13. 

Trkman and McCormack (2009) describe that supply risk or supply disruptions is emerging as a key challenge to supply chain management, and that the ability to identify which supplier has greater potential of disruption is a critical step in managing the frequency and impact of these disruptions. 

Argue that supply risk is one of key challenge to supply chain management and propose a new method for assessment and classification of suppliers... 

Zsidisin, G.A. (2003). A grounded definition of supply risk. Journal of Purchasing Supply Management, 9(5/6), 217. 

Yang (2006) Multi-criteria math model Developed a five-step multi-criteria strategic supplier selection model incorporating the supply risk... 

Yang, T. 2006. Multi objective optimization models for managing supply risks in supply chains. PhD dissertation. Department of Industrial Engineering, The Pennsylvania State University, University Park, PA. 

The emphasis in this section is on publications on risks related to events that can cause disruptions in a supply chain. We review those models and methods that have not been discussed in detail in this chapter. To date, most of the work on supply chain risk considers demand and supply risks rather than survivability of supply chains. Therefore, we also review recent papers addressing risks related to uncertainty in demand and supply. 

Dun and Bradstreet (www.dnb.com) have a "Supplier Risk Manager" product that is offered to help their customers "effectively manage suppliers and mitigate supply risks."... 

Babich Financial—real Supply risk, supply Assumes firm has an option of... 

Rice and Caniato, (2003a) Report Supply risk, transportation risk, facilities risk, communication risk, human resources risk Reviews and discusses risks associated with supply chains and concentrates on supply chain disruptions due to terrorist attacks. Proposes a framework for risk assessment... 

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