Supply Chain Transformation: Building and Executing an Integrated Supply Chain Strategy

CHAPTER 7Manage Risk in the Global Supply Chain

At this point, you have considered your customers’ needs and analyzed the internal and external environment, including competition and technology. Now is the time in your strategy development journey to consider the risks your supply chain will face and how to deal with them. The lack of a robust process for identifying, prioritizing, managing, and mitigating risks is a clear threat to your supply chain and its strategy. Among the hundreds of companies in our database, we rarely find a formal risk management process in place. Frankly, most firms ignore risks, sometimes with dire consequences.

The supply chain arguably faces more risk than other areas of the company because of its global nature and ...