Design Risk Management: A New Framework for Managing Supply Chain Risk

• Omera Khan

Outsourcing, off-shore manufacturing and the globalisation of supply chains have become significant trends in the textile and clothing supply chain. Whilst the potential benefits of offshore manufacturing are often assumed to be significant cost savings, it can be argued that companies are often naïve about the problems and risks that arise when moving to offshore manufacturing. A significant issue arising from this trend is how should companies manage their design capability in a global supply network, with the increased lead times that offshore manufacturing often generates. In a dynamic, fast moving sector, where quick response and agile supply chain management are the recipe for success, design has become an increasingly important capability for a firm which must be factored in to the supply chain management process. Using a case study example of Marks and Spencer (M&S) we examine how a change in sourcing policies can impact a company's supply chain risk profile and argue the importance of design risk management for mitigating supply chain risk.

Seiten 253 - 265