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Even without the recent turbulence in the capital markets, executive minds were already spinning with the relentless onslaught of events in the past year that have threatened to disrupt their continuity of supply.
An expanding list of globally scarce resources, rising energy and fuel costs, volatile and unpredictable demand, and increased international regulation are each taking their toll on profitability. And this is without consideration of geopolitical events, terrorism, and natural disasters that drive chaos into the best strategic supply chain plans overnight. For executives in manufacturing and distribution, tomorrows source of disruption will be another lesson in the management of uncertainty.
To effectively manage this uncertainty, executives must analyse and find actionable answers to the following key questions:
* Have the key sources of risk been identified and their impact assessed?
* Has the organization built chaos-tolerant supply chains that can absorb the knocks?
* Is risk management seen as a one-off exercise, initiated in response to an unexpected event, or are employees actively building risk mitigation into their everyday activities?
This article examines some of the key sources of risk and practical steps that organizations can take to mitigate supply chain disruption. CLICK HERE to view the PDF