Supply Chain Risk Management

Emerging Risk Management Tools, Techniques, and Approaches • 241

value chain, not to mention the trust between these two sides, has histori-

cally been less than stellar. While most companies engage in some form of

demand planning, the link to the supply side is oen incomplete.

Best- practice companies demonstrate certain characteristics related to

eective demand and supply planning. e rst characteristic involves the

use of systems and practices that help balance demand and supply across a

supply chain. Recall from an earlier chapter that two of the more advanced

systems to collaboratively align supply and demand are S&OP and collab-

orative planning, forecasting, and replenishment (CPFR). Chapter3 dis-

cussed S&OP and CPFR. A second cha