Exam CSCP Topic 2 Question 591 Discussion

When supply continuity is threatened due to heavy dependence on international suppliers, the most appropriate action is to conduct a risk assessment. This involves systematically identifying potential risks, evaluating their impact, and developing strategies to mitigate them. The risk assessment provides a comprehensive understanding of vulnerabilities and helps in making informed decisions on sourcing strategies, inventory management, and logistics.
* Sourcing from domestic suppliers may reduce some risks but might not be feasible or cost-effective without a thorough assessment.
* Carrying additional safety stock is a mitigation strategy but does not address the root cause of supply risk.
* Spreading logistics across multiple carriers can help manage transportation risks but does not cover the broader supply chain risks.
References:
* Christopher, M. (2011). "Logistics & Supply Chain Management."
* Waters, D. (2011). "Supply Chain Risk Management: Vulnerability and Resilience in Logistics."