Learning Goal: I’m working on a business question and need guidance to help me l

Learning Goal: I’m working on a business question and need guidance to help me learn.Using your chosen company, describe the types of supply chain risks it faces. Include the following in your essay:Identify the risks in the different parts of the supply chain.
Describe some of the downsides of not mitigating those risks.
Describe the type of actions you think a supply chain manager would need to take in order to control or eliminate the risks.
The company and chart is provided below :The first risk present in the supply Chain of Amante Della Pasta is the Currency Exchange. Due to the currency of Italy being Euros, this means that transactions are operated on a dollar to euro basis. The probability of this happening is 12% as the exchange rate changes frequently but is reviewed monthly (TradingEconomics. 2021). By not mitigating this risk, transactional costs will be inconsistent, and this could cause charges to increase unexpectedly which can impact the overall budget of company imports. A supply manager can mitigate this issue by negotiating that all transactional exchanges with Italian exporters are conducted in Dollars, so that pricing remains consistent.The second risk present is transaction times taking too long, which can result in conflict or slow the supply chain. The probability of this occurring is 77% which is frequent and therefore Amante Della Pasta must prepare for this. By not mitigating this risk, the company can lose suppliers or be forced to renegotiate prices. A supply chain manager can enforce an agent to negotiate with suppliers, or offer a time limit on transactions by which if not met a discount is taken from the overall charge.A commercial risk along the supply chain is late deliveries which occurs roughly 10% of the time (USGlobalMail. 2021). By not finding a way to mitigate this risk, Amante Della Pasta will have less product for distributors in the supply chain and generation of revenue will slow down. To mitigate this risk, the company can acquire one main logistics provider with insurance on late deliveries. By having one main provider this will stabilize transportation of product and be more efficient to monitor. A further commercial risk is product damage which occurs 7% of the time (SpeedCommerce. 2021). The downside of not mitigating this risk is that this will result in loss of revenue as damaged products must be discarded. To mitigate this risk, products can be insured, or a supply chain manager can negotiate reimbursement for a percentage of logistics charges for a proportion of damaged product.A political risk in the supply chain is an increase of brokerage fee which occurs approximately 5% of the time. This is unavoidable as this fee is not in the control of the company. To mitigate the impacts of this issue, the budget can be re allocated to control the risk if this occurs.A further political risk is labor strikes where the product is being produced, which is rare but occurs approximately 3% of the time. Despite being unavoidable by the company, the impacts can be controlled by monitoring the political situations of the countries that the company is in business with. This will control any losses or supply chain delays that the company my face and aid a faster recover when the political issues are resolved.

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