What is risks in strategy procurement? 

Risks in strategic procurement encompass a variety of challenges that can significantly impact the efficiency and success of procurement processes and supply chain management. These risks can arise from various sources, including supplier-related issues, market volatility, and operational inefficiencies. One of the primary risks involves the complexity and uncertainty in the procurement and supply processes, which can hinder managers' ability to achieve their goals due to increased influential factors and the complexity of purchasing systems. Additionally, the procurement strategy must navigate the delicate balance between minimizing risks and maximizing efficiency, requiring a comprehensive approach that includes evaluating suppliers, identifying alternate suppliers globally, and changing logistics among other strategies. Financial risks also play a crucial role, especially in industries like electricity retail, where the objective is not only to supply demands but also to control financial risks under uncertainties. Different risk measures such as minimax regret, chance-constrained, and conditional value-at-risk criteria are employed to assess and mitigate these risks. Moreover, the procurement process in services, for instance, involves identifying and implementing risk mitigation strategies to enhance risk management effectiveness, highlighting the importance of coordination with vendors and clarification of documents. The advent of online promotion and e-commerce has introduced new challenges, such as uncertain demand and unreliable supply, prompting e-tailers to adopt portfolio procurement strategies that combine long-term contracts and spot markets to mitigate these risks. Public procurement, particularly in high-risk areas like Malta, lacks a national risk management strategy, underscoring the need for development in this sector. Furthermore, procurement strategies must account for supplier capacity uncertainties and market demand fluctuations, necessitating robust procurement strategies that can adapt to varying degrees of parameter uncertainty. The strategic sourcing literature also identifies supply chain risks specific to regions like Africa, where there is a significant gap in research and an opportunity for developing integrated risk management frameworks. Lastly, backup sourcing emerges as a critical strategy to mitigate the adverse consequences of supply risks, emphasizing the importance of understanding the dynamics between wholesale prices, risk probabilities, and supply information symmetry or asymmetry. In summary, risks in strategic procurement are multifaceted, ranging from supplier reliability and market volatility to financial uncertainties and operational challenges. Effective risk management requires a holistic approach that considers these diverse factors to ensure the resilience and success of procurement strategies.

Procurement Strategy with Backup Sourcing under Stochastic Supply Risk

Risk in procurement strategy includes stochastic supply risk and demand uncertainty. Backup sourcing helps mitigate these risks by providing reservation price and quantity adjustments based on various factors like wholesale prices.

Implementing a risk-based approach in public procurement

Risks in strategy procurement include multiple risks affecting public procurement processes, impacting the quality and quantity of government services, emphasizing the need for a national risk management strategy.

Risk Management in Strategic Sourcing: An African Perspective

Supply chain risks in strategic sourcing in Africa include challenges unique to the region, such as limited literature, sourcing difficulties, and underdeveloped management tools compared to other economies.

Managing supply risk: Robust procurement strategy for capacity improvement

Risks in procurement strategy include uncertainty in supplier capacity, impacting optimal order quantity and wholesale price, with higher uncertainty leading to lower expected profit for the buyer.

Risk-Averse Portfolio Procurement Strategy Under Large-Scale Promotion Online

Risk in strategy procurement includes uncertain demand from strategic customer behaviors and unreliable supply. A risk-averse e-tailer should consider a portfolio procurement strategy incorporating long-term contracts and spot markets.

Analisis risiko dalam proses pengadaan jasa di ru iii menggunakan pendekatan house of risk (hor)

Risks in strategy procurement include coordination challenges with vendors, document clarification issues, and negotiation difficulties, as identified in the House of Risk approach for RU III.

Providing Risk Management Strategies in Procurement and Supply Processes

Risk in strategy procurement includes identifying, analyzing, and managing uncertainties in purchasing processes to ensure effective performance and goal achievement in project-based organizations, as outlined in the paper.

Risk-Based Procurement Strategy for Electricity Retailers: Different Scenario-Based Methods

Risk in strategy procurement for electricity retailers is managed through stochastic-based measures like minimax regret, chance-constrained, and conditional value-at-risk criteria to assess and control financial uncertainties effectively.

Operational hedging or financial hedging? Strategic risk management in commodity procurement

The risks in strategy procurement include demand uncertainty, spot price volatility, and potential asymmetric risk management equilibria due to sequential production competition.

Supplier Prioritization and Risk Management in Procurement

Risks in procurement strategy involve supplier prioritization, risk management, impact assessment, and contingency planning to minimize supply chain vulnerabilities and ensure efficiency and efficacy.