International trade is complex due to global networks consisting of manufacturers, business partners, suppliers, and other third parties with the possibility of risk in every link within the supply chain. To successfully mitigate these potential risks, it is important for you to understand the myriad connections that may trigger exposure.
Shortages in supply and disruptions in the logistics chain are a tale as old as time. And while there are few precedents in this period of uncertainty, the basics remain the same: By adopting guidance that pacesetters use to navigate other forms of disruption, you can confidently lead your supply chain through change, now and in the future.
Phil Renaud, executive director of The Risk Institute at The Ohio State University’s Fisher College of Business, runs down the level of risk to supply chains created by relationships with third parties — and relates how a certain type of third party can help to mitigate it.