Supply Chain Management

Risk is always something you must mitigate in supply chain management, but the ideal risk management strategy may require a more conservative path during economic uncertainty than when the economy will likely be booming for the foreseeable future.

In order to reduce risk, you must be able to see risk coming. To do that, you must consider all the potential factors that may affect your supply chain: geopolitical conflicts, national politics, natural disasters, and the like.

It’s also important to consider that supply chains are a complicated web. While you may not be dealing with companies in a country affected by a specific destabilizing event, your suppliers or your suppliers’ suppliers may be.

Develop Resilience
Your mother maybe told you not to put all your eggs in one basket, and this old adage applies to supply chain management, as well. A diverse network of suppliers mean that it’s unlikely all of your suppliers will be affected by a specific supply chain-altering event.