Ericsson’s current supply chain risk management approach
In the last few years (after the “Albuquerque accident” and before the renewal of its
insurance), Ericsson has further developed and implemented processes and tools for
supply chain risk management. The purpose is “minimizing risk exposure in the
supply chain”. Its approach for this (Figure 3) is based on a process with
feedback-loops between the sub-processes. The risk management process includes risk
identification (similar to risk analysis), risk assessment, risk treatment (similar to risk
management) as previously discussed in theory, but it has also added a process step for
risk monitoring. In parallel (and central) to this, the company has put incident handling
and contingency planning.