Supply Chain Angst

 
 

findings_global_shipping

As global organizations become more complex, they are increasingly dependent on their supply chains—and more susceptible to the risks associated with them. Yet, of the more than 200 global companies that participated in a survey by PwC and the MIT Forum for Supply Chain Innovation, almost 60% said the risk management processes put in place to address potential supply chain disruptions were “immature”—meaning that they mitigate risk simply by increasing capacity or strategically positioning added inventory rather than by using longer-term, strategic measures. Companies’ top three concerns were increased dependencies between supply chain entities, more frequent changes in the extended supply chain network configuration and more frequent new product introductions. Those surveyed also believed the most important capabilities for creating a robust supply chain were aligning with supply chain partners, integrating internal business functions, and having an “upstream and downstream” information sharing process. In order to mitigate supply chain risk, respondents favored creating and applying a business continuity plan, implementing a dual-sourcing strategy, and using both regional and global strategies.

 
Caroline McDonald

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About the Author

Caroline McDonald is the senior editor of Risk Management.

 
 

1 Comment

  • The supply chain industry will forever be developing. Therefore, I would think having contingencies in place could minimise risk between entities and intermediaries. In addition, Caroline I think you made a great point about implementing a dual-sourcing strategy, which in actual fact be a great source to decrease risk which can work in accordance with a contingency plan. Although, looking into the future, you could possibly see the regional and global strategies colliding with one another in terms of regulations.

     
 

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