What keeps supply management professionals up at night? For many, it's worrying about a disruption to operationally critical services because a supplier is in financial distress or becomes embroiled in a scandal. Many supply managers who have weathered the economic storms of the past few years have seen firsthand the crippling effects of supply disruptions to a company's operations and bottom line.
Traditional risk management approaches take a static, often outdated, snapshot of risk. Steps like prequalification, risk classification and periodic maintenance reviews rely predominantly on backward-looking indicators and do not necessarily capture future risks. It is well-known that history is not always a good predictor of the future. What businesses today need is a risk management program that anticipates risk and potential supply disruptions in advance, so that mitigating actions can be taken before the disruption occurs.
Read Full Article
Timely, incisive articles delivered directly to your inbox.