Supply Chain Risk Management Resilience & Rebalancing

Abstract

Supply chain is a network and infrastructure among organizations that is required to produce and distribute a product or service. As organizations extend their operational and commercial footprints, managers are focusing on improving their ability to avoid supply chain risks and maintain a competitive advantage. Supply chain disruptions is an unplanned and unanticipated event arising due to external and internal factors and these disruptions are increasingly costly. Organizations are experiencing increased supplier risk events due to extreme weather events, unplanned communication outages, supplier financial challenges, pandemic-induced lockdowns and cyberattacks, for example. The growth in cross-border flow of goods and services and in the number of partners in an organization’s global supply chain ecosystem has also increased the complexity, making many organizations to focus on creating efficiencies and reducing costs. However, moving to leaner supply chains has made organizations fragile and more susceptible to the growing number of disruptions. As a result, organizations are restructuring or rebalancing supply chains to mitigate the risks of disruptions and to build resilience while increasing visibility and creating the need to balance new operating challenges. Failing to respond to supply chain risks by building adequate contingency plans puts organizations at a greater risk of potential failures and enhanced costs during disasters and other business interruptions.