Risk is an important topic in business today, and supply chain management is right in the middle of discussions about risk. Potential disruptions – of moderate to major consequence – are more likely today than 20 or even ten years ago, for reasons that include:
- Supply chains lengthening and becoming less robust
- Natural disasters occurring at an increasing frequency
- Terrorism rising
- And who knows what’s coming next
These factors can lead to significant disruptions of the demand/supply balance, and they often come with little or no warning. They’re “surprises.” And, actually, surprises can be not only bad surprises, but also good ones – provided they’re managed effectively.