Supply Chain professionals have traditionally addressed supply chain risks as part of their due diligence process when identifying and qualifying potential suppliers. This approach has served them well in the past when extreme events were less frequent and the consequences of such events were less immediate and far-reaching.
Today, with clusters of suppliers located in specific regions to gain operational efficiencies and information flowing in real time, a new dimension to risk has evolved and – most companies find themselves in a reactive mode. As companies large and small become less vertically integrated and more dependent on third party suppliers, the nature of supply chain risk management has changed dramatically, requiring new approaches to designing and implementing risk mitigation strategies.
This ISG white paper examines how the nature of supply chain risks faced by business organizations is changing, and outlines elements of a strategy designed to effectively assess and mitigate risk in a dynamic and inter-dependent global economy.
