Managing Supply Chain Disruption Risk

Supply strategies are complex by nature; there are many instances where a single-source supply strategy is the right business decision even when alternative options exist. Management’s decisions to decrease inventory levels, rely on a single-source strategic supplier, and adopt just-in-time manufacturing and delivery techniques involve trade-offs in which quality, time and cost considerations often win out over business continuity considerations.

Supply chain disruptions are a reminder that these trade-offs are not without risk. This issue of Board Perspectives: Risk Oversight provides key considerations regarding supply chain disruption risk and how to manage it.