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- Category: business
- Category: supply chain
- Category: risk management
- Supply Chain Risk-Performance Matrix
Supply Chain Risk-Performance Matrix
The Supply Chain Risk-Performance Matrix is a 2x2 matrix used to evaluate the risk and performance of a supply chain. It is used to identify areas of risk and potential opportunities for improvement.
At a very high level, the Supply Chain Risk-Performance Matrix is used in the context of business, supply chain, risk management.
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What is the Supply Chain Risk-Performance Matrix?
A visual explanation is shown in the image above. The Supply Chain Risk-Performance Matrix can be described as a matrix with the following quadrants:
- High Risk/High Performance: High Risk/High Performance: Supply chain is performing at a high level and the risk is low (e.g. on-time delivery of products with minimal defects)
- High Risk/Low Performance: High Risk/Low Performance: Supply chain is performing at a low level and the risk is high (e.g. late delivery of products with high defect rate)
- Low Risk/High Performance: Low Risk/High Performance: Supply chain is performing at a high level and the risk is low (e.g. on-time delivery of products with minimal defects)
- Low Risk/Low Performance: Low Risk/Low Performance: Supply chain is performing at a low level and the risk is low (e.g. late delivery of products with low defect rate)
What is the purpose of the Supply Chain Risk-Performance Matrix?
The Supply Chain Risk-Performance Matrix is a 2x2 matrix used to evaluate the risk and performance of a supply chain. It is used to identify areas of risk and potential opportunities for improvement. The matrix is divided into four quadrants, each representing a different level of risk and performance. The four quadrants are: High Risk/High Performance, High Risk/Low Performance, Low Risk/High Performance, and Low Risk/Low Performance.
The High Risk/High Performance quadrant represents the most desirable situation, where the supply chain is performing at a high level and the risk is low. This quadrant is typically associated with well-managed supply chains and indicates that the supply chain is well-positioned to meet customer demands. The High Risk/Low Performance quadrant represents a situation where the supply chain is performing at a low level and the risk is high. This quadrant is typically associated with poorly managed supply chains and indicates that the supply chain is not well-positioned to meet customer demands.
The Low Risk/High Performance quadrant represents a situation where the supply chain is performing at a high level and the risk is low. This quadrant is typically associated with well-managed supply chains and indicates that the supply chain is well-positioned to meet customer demands. The Low Risk/Low Performance quadrant represents a situation where the supply chain is performing at a low level and the risk is low. This quadrant is typically associated with poorly managed supply chains and indicates that the supply chain is not well-positioned to meet customer demands.
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What templates are related to Supply Chain Risk-Performance Matrix?
The following templates can also be categorized as business, supply chain, risk management and are therefore related to Supply Chain Risk-Performance Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.
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