Supply chain risk management

TSMC´s risk management department (RM) initiated the first phase of its Supply Chain Risk Management Project in 2003, which included a risk assessment of the company´s single-source raw material suppliers. RM worked jointly with the procurement department on this project to assess potential supply chain risks from single-source suppliers located in throughout the world. Suppliers participated in the risk assessment by providing survey responses on key risk issues, which were then evaluated based on key supply risk factors that could interrupt company operations, such as geographic, contingency planning, factory, replacement, and supply/demand. This work provides an overview of the methodology used for this project, and the techniques applied to conduct the risk assessment.