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Managing a supply chain in 2020 incurs a certain amount of risk by necessity, but planning ahead to strategically manage risks, respond to incidents, and deal with disruptions can put your business ahead of competitors.
In order to best address these supply chain risks, they can be categorized by implications, or by sources.
- Qualitative: addresses the reliability and accuracy of materials
- Quantitative: addresses the availability of material or overstocks
- Atomistic: impacts only constrained links within it
- Holistic: requires businesses to assess entire supply chains
Supply chain risks can also be categorized in the following segments:
- Global sourcing risk
- Foreign exchange risk
- Supplier criticality
- Supplier financial risk
By looking at each of these risk categories individually, businesses gain a deeper understanding of how to best prioritize their attention. Supply chain risk management trends for 2020, examined below, offer further…
