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Can You Afford to Ignore Supply Chain Risk?

Companies are moving towards a new mindset when it comes to growth: do it anywhere, anyway, with anyone. While that does promote rapid and never-before-seen expansion, it also makes supply chain risks even more acute. When a supply chain reaches across the entire world, things like natural disasters, governmental changes, and lead time can make an enormous impact. This article by Razat Gaurav explores the sources of risk in this new, larger scale supply chain environment: Demand uncertainty is another source of risk. It often requires supply chain organizations to operate in a narrow safe zone that keeps the triple threat of unmet demand, excess/obsolescence charges, and unnecessary financial commitments at bay.This is particularly true for industries that experience the “long-tail phenomenon,” where there are few high-volume products but many medium- and low-volume products. Well-designed supply networks can increase the operational “safe zone” by providing recourse to feasible alternatives.Gaurav goes on to explain how risks are not created equal (some demand much more attention and concern than others), and provides a quick overview of risk identification, classification and then estimating the overall impact of risks.

About Matthew Kabik

Matthew Kabik is the former Editor of Computer Aid's Accelerating IT Success. He worked at Computer Aid, Inc. from 2008 to 2014 in the Harrisburg offices, where he was a copywriter, swordsman, social media consultant, and trainer before moving into editorial.

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