Supply Chain Risk Management – How to Sell the Benefits

Last week we announced our next webinar on October 9th , at 2pm UK time, 3pm CET and 9am on the US East Coast, with solution provider riskmethods – “Making the case for supply chain Risk Management”.  You can register here, free of charge of course.

There is an accompanying paper coming out soon, and in both webinar and paper I’ll be looking at how procurement can construct a convincing business case that will support investment in risk management tools and systems, as well as perhaps people and training too.

As we said last time, one of the traditional issues has been that it is easier to explain a business case that is going to (supposedly) DO something (like launch a new product) than one that is designed to STOP something happening (i.e. reduce and manage risks).

However, we do think there are ways that procurement can get the message across, and the first stage is to describe the current situation in the organisation in terms of supply chain risk. Clearly, if you are seeking investment, then the current situation is by definition not ideal, so the business case needs to highlight the weaknesses. That can be done in a number of ways – comparing the situation with an “ideal” model of risk management is one, benchmarking against other firms might be another.

It can also be useful to remind those assessing the business case of past incidents, problems or issues that have affected the organisation! There is nothing like the memory, preferably still fresh in people’s minds, of the time the factory shut down because of a fire at a supplier’s premises, or deliveries were delayed because of a dock strike no-one knew about until it happened, or when the CEO ended up on the front pages because of a human rights scandal in the supply chain.

Indeed, throughout the paper and the webinar, we will be talking about the way you can combine “hard” numbers, facts and information with these “stories” that can also be powerful drivers for change.

So, enough of that for now – and as well as me running through the content of the business case paper, I’ll be asking Rolf Zimmer, founder of riskmethods, to share his experience of risk management over many years in the context of constructing an effective business case. What has he seen that worked well for firms looking to invest? And are there any “magic bullets” that will guarantee to make the CFO roll over and sign that cheque?

We’ll find out on October 9th,, so for an illuminating 45 minutes, including some time for questions and discussion, register here.

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