Supply Chain Risk

As critical as supply chain risk management has become, the market for solutions in this area is still emerging and evolving. Solutions are incredibly diverse and wide-ranging. Here we establish a framework for the market and examine the segments, functionality, and players.

A new MIT study on supply-chain risk shows no correlation between the total amount a manufacturer spends with a supplier and the profit loss it would incur if that supply were suddenly interrupted. This counterintuitive finding defies a basic business tenet that equates the greatest supply-chain risk with suppliers of highest annual expenditure.

Almost seven out of 10 business leaders believe supplier risk analysis will become more complex as they expand into new global markets. That’s according to research by the Economist Intelligence Unit’s report Strategies for managing customer and supplier risks, sponsored by Dun & Bradstreet.

Some work toward a comprehensive Enterprise Risk Management system while others respond piecemeal by putting specialists in place to manage specific threats. Where does your company fall along this spectrum?

Direct physical losses from disasters are not only following a steady upward path, but are also rising more rapidly than regional GDP

Everyone seems to be aware of supply chain risks now in the aftermath of last year’s tsunami in Japan followed just six months later by heavy flooding in Thailand. The two natural disasters had a combined cost to global industries of nearly $230 billion. Worldwide, natural disasters cost $310 billion according to the insurer, Munich Re.

Organizations should consider how the costs of managing risk balance out with potential lost revenue and damage to reputation that can result from a disruption to operations caused by a natural disaster or political instability in key supplier regions. To be a global business, supply chain risk management is a necessity. The key is to determine how to do it efficiently and effectively.

Global Supply Chain Risk Is Concentrated and Concealed in Sub-Tier Suppliers According to New Findings.

Research study conducted with PricewaterhouseCoopers suggests performance indicators dropped by 3 percent or more because of supply chain disruptions.

The MIT Forum for Supply Innovation has released a report in collaboration with PwC, based on the results of its 2013 Global Supply Chain and Risk Management Survey.

Some large companies believe that their commitments to risk management stifle innovation.

This report was originally tailored to the request of an electronics manufacturer, to explore emerging markets and the political and economic barriers to direct investment. The various business risks that influence supply chain risk as a whole are discussed.

In a recent study conducted by Peerless Research Group, supply chain and logistics managers are in agreement that global supply chains are becoming progressively complex causing more potential points for disruption along the supply network.