
16 • Managing Supply Chain Risk
A few managers took the view that eective supply chain risk management
does not need to be a highly formalized and structured process. However,
this study favors a more formal, structured process for managing risk.
FACTOR 4: PERFORMANCE METRICS
Factor 4—Data and Observations
All of the rms in this study have developed and monitor a set of perfor-
mance metrics to maintain a risk prole for their supply chains. ey do
so by using an assortment of tools and techniques such as: initial sup-
plier evaluations, QS audits, industry benchmarking, supplier question-
naires, report cards, capacity planning, lead- time ana ...