Global supply chain management
Describe the actions that GoGreen should take to evaluate its suppliers. Be specific and provide examples
There are various actions that GoGreen should take to evaluate its suppliers. One of these actions is the analysis of timely delivery among the suppliers. In this case, the firm should determine which suppliers are able to do the deliveries on time and those who may delay the delivery. Apart from that, cost can be used as the other element in evaluating the performance of the suppliers. In this case, the assessor should analyze the amount incurred after ordering the goods from the suppliers. Therefore, cost and timeliness analysis are the measures that should be used in evaluating suppliers (Lau, Ng, & Acevedo, 2019).
As an importer of bioethanol, what are some of the major risks that GoGreen faces with the supply chain? Be specific and provide examples
Conversely, as an importer of bioethanol, GoGreen is likely to face various risks and this includes natural disasters such as the coronavirus pandemic. The other risk that is likely to be faced by the firm is poor product quality, with an example being low-quality inputs from its suppliers. Other risks include political instability along with suppliers’ bankruptcies (Drake, 2012).
Evaluate the impact of each risk (use tables 12.2, 12.3, and 12.4) that you have identified. Explain your rationale. Be specific.
The two main risks outlined above can be further evaluated based on the severity of the impact that they may cause and the likelihood of their occurrence. When it comes to natural disasters, the probability of their occurrence is ranked at medium-high. On the other hand, on the severity of the impact related to a disaster, this is classified as critical. The rationale behind this is that businesses may still survive in the course of the disaster and even after the disaster.
Describe strategies that GoGreen can take to mitigate security risks associated with its supply chain. Be specific and provide examples
There are various strategies that GoGreen can use to mitigate its risks. One of these measures is taking risk insurance. This can help in mitigating the impact of risks such as a disaster. For instance, given the current covid-19 pandemic, the firm may get paid from the losses that it may suffer during the risk event.
References
Drake, M. (2012). Global supply chain management. New York, N.Y.] <222 East 46th
Street, New York, NY 10017: Business Expert Press.
Lau, Y., Ng, A. K. Y., & Acevedo, J. (2019). Principles of Global Supply Chain Management
. London: Anthem Press.