Supply Chain Risk Assessment Report

Scope and Objectives

As requested by the Client, CAA performed an “Online Supply Chain Risk Assessment (OSCRA)” on a specific site within the Gauteng area. The Client were a leader in the Construction environment, working with a number of value chains and supply chain processes, specifically impacting on the Project Life cycle and Project Delivery of each project.

The OSCRA consists of a three (3) stage process to identify Supply Chain Based Risks, whether (Strategic, Operational or Project) within the Inbound Supply Base and Processes.

Stages of the OSCRA

The OSCRA consist out of three interactive stages of implementation. These three stages are shortly defined in the bullets below:

  • Stage One (1) focuses on the internal activities within the site.
  • Stage Two (2) reviews 150 primary Suppliers / Vendors and their processes, whilst Stage
  • Three (3) focuses on Secondary Suppliers, where there is limited spend or deliveries.

For the purposes of this Case study, the review reflects the findings of Stage 1 only.

Comments and Recommendations

In the interests of brevity only matters needing management attention are highlighted. All items reported on are classified as either:

  • Red – High risk and requires focus in the short term
  • Amber – Medium risk and will require management action in the medium term

Executive Summary

Stage 1 – Internal Assessment

The assessment submitted by One (1) respondent has identified the entities inbound supply process as an overall medium risk. It is important to note that although the risk is identified as medium it is in the upper percentiles of medium closer to high risk. Notwithstanding being a medium risk the assessment highlighted high risk areas.

Below is a summary of the Nine (9) Supply Chain Risk Categories and their status reflecting the areas which should be prioritized. Further detail is provided as per Schedule 1, highlighting the potential risks to the specific entity.


Interpretation

The OSCRA is a fantastic tool to determine where is the risks in the total Supply Chain value chain. Thorough this in-debt analysis, one knows where to allocate resources or where to chance a strategy.

From our observations, it has become evident that Companies know the Supply Chain environment, but has very complex measurable.

The simplicity and the power of Risk Management within the Supply Chain environment is resulting in these nine (9) pre-defined areas of measurement.

CAA and its partners are exposed to a very diverse environment and clients. Taking this into account, our strategy for Continuous improvement is evident in our products we deliver.

Conclusion

We would like to extend our appreciation to those involved for their assistance and co-operation afforded to us during the course of the assessment.