Wednesday, 5 November 2014

Risk Anticipation and Rapid Mitigation in Supply Chain

Speed of response is a critical capability of dynamic supply chains and the key to mitigating risk and swiftly implementing the changes that will make the supply chain still more resilient. But response time hinges on the company’s ability to proactively identify high-risk events, and to decide whether to design the operation to flex to known risks—those that are unpredictable but relatively more likely to occur—or to have contingency plans for the unknowable—risks that are unlikely to occur but are potentially catastrophic.

The experience suggests that being able to distinguish among and between risks is a key differentiator. And there are predictive and real-time risk management technologies available that companies can use, in combination with scenario planning and execution technologies, to drive far greater levels of supply chain dynamism.