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Managing Supply Chain Risk in a Complex World

When viewed as parts, processes, and procedures, risk is ultimately manageable

Mike Richman
Fri, 07/26/2013 - 16:24
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It’s been said that supply chain risk today is riskier than ever before. Why? Well, there are several reasons.

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Supply chains are lengthier. Almost everyone manufacturing anything today must deal with a wild proliferation of suppliers, many of which reside in nations scattered across the globe. Of course, original equipment manufacturers remain ultimately responsible for the all the components of the product that reach the customer. More suppliers increases the potential for more supply interruptions for any reason, be it force of God, human error, or anything else.

Lengthy and sometimes convoluted supply chains are an effect of increasingly complex products, especially in high-tech sectors such as electronics or medical devices. More components mean more chances for something to go wrong, and particularly in FDA-regulated environments, risk increases accordingly.

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Comments

Submitted by umberto mario tunesi on Fri, 08/02/2013 - 21:06

Risk as Opportunity

And Suppliers not viewed by their above tier Customers as enslaved cotton pickers. Economy history tells us much about suppliers that out-grew their giant customers, it's a "simple" question of risk-taking, therefore. Certainly, risk is more and more spoken of, much less thought of: it seems infants and animals and plants are more vividly aware of it - though they don't uselessly spend time and money to give it a definition - than adult humans. Risk has obviously not only to do with safety and health: it has also to do with an economical, industrial, social environment that we've taken for all too granted, too long. Maybe that cotton will have to be picked by its planters, in the next years. Thank you.  

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