A New Approach to Manage Supply Chain Risk

Video description

What risks could disrupt your firm’s supply chain and dramatically affect the bottom line? Firms in all industries are exposed to a variety of low-probability/high-impact risks that have the potential to disrupt operations and significantly damage the business. These risks are difficult to predict and quantify—and therefore are extremely difficult to manage. As a result, managers deploy multiple measures and countermeasures—often sub-optimally—leaving their firms exposed to key risks while simultaneously wasting resources by mitigating risks that would not cause significant damage. In this HBR webinar, supply chain expert David Simchi-Levi, a professor of engineering systems at MIT, shares a unique new approach to managing supply chain risks. This approach focuses first on how a supply chain disruption will affect operations, enabling a company to optimally focus its limited management resources. Simchi-Levi describes how this approach is being successfully applied in several industries and draws on case studies. He also shares how companies have used this model to identify previously unrecognized risk exposures and develop mitigation strategies, track changes in risk exposure, and respond to a disruption.