Access Level: Free
Research Topics:
Strategy Supplier Mananagement Supplier Risk & Compliance
In the fourth of our series of short papers outlining the most disruptive supply chain risks and how to avoid or manage them, this paper looks at what we define as "man-made" risks, which range from incidents such as fires and explosions, to strikes, labour disputes and even the potential effects of normal business events - such as a key supplier moving production to a different factory. The impact of such events can be very serious for customers; at worst, a key supplier might simply disappear.
It is impossible to predict all such risks, by their very nature, but strategic planning and understanding of critical supply chains can help to mitigate that risk. Then, most crucially, having access to rapid and accurate information when something relevant occurs is key; reacting quickly is often vital to minimise the effect of the risk event. This paper both outlines the risks and their implications, and gives some advice on managing them effectively.