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Managing The Risks Of A Globalized Supply Chain

IT goes without saying that there is an expansion of risk with the expansion of a supply chain. A globalized supply chain hosts a plethora of ways that something can go wrong, and it's a supply chain executive's job to recognize, understand, and minimize those risks for the good of the supply chain and all of the business areas it supports. This article by Milosz Majta take a look at some of the problems that come around while managing a globalized supply chain and a few techniques to deal with them. He begins with, unsurprisingly, the increase in complexity. Manufacturers are not only responsible for their own main line of supply, but also any supporting supply chains and their suppliers as well. A global supply chain also has to be cognizant of data flow: often times decisions about a global supply chain are made without having all data readily available, and this is remarkably dangerous. More dangerous given how much a realized risk in one country can spin into a supply chain crisis throughout the world. This makes visibility and essential ingredient for successful supply chains: As a result, the value of supply chain visibility has increased significantly. This capability helps to significantly minimize risk of loss, order delays and reduced quality. Manufacturers that take a wider, more holistic perspective across operations can better manage complex supply chains. By implementing technologies that can increase visibility into the supply chain, manufacturers can more easily collaborate and communicate with suppliers. Not only will processes instantly improve, but the ability to prevent (or at least minimize) disruptions will help to increase the bottom line. Majta ends the article by stating that the global marketplace is a blessing and a curse for companies. A blessing in that it opens up new ways to make profit, a curse in that every issue along the worldwide supply chain can have disastrous effects.

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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