Supply chain risk management is a facet of every company’s business strategy to some degree. One approach to managing risk is to look at a high-level view of suppliers and prepare for event-based risks, such as bankruptcies, natural disasters, and labor disputes. These events have a higher probability depending on factors like supplier previous financial issues, geographic factory locations, and local labor conditions and laws. While this approach could prevent supplier outages, taking such a high-level view ignores the nuances of relationships with suppliers and the day-to-day problems we experience in obtaining parts. What are some strategies to manage risk that reflect the complexities of our supply chains? Please join me in a discussion of the challenges we all face in managing our suppliers and the real-life risks in our supply base.
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