Why Today’s Global Supply Chains Are At Risk
Today’s global supply chains are at risk. Companies are aware of this, but seem uninterested in making the investments needed to facilitate redundancy or change. A great example is the faulty ignition switch in the GM model cars. If a risk-management program was in place to identify weaknesses in the supply chain, maybe this issue would have been caught before innocent consumers were hurt. Other risk factors looming over global supply chains which can cause disruptions include floods, earthquakes, tsunamis and other natural disasters. Identifying what your supply chain looks like and what risk factors exist along it needs to be a major operational focus of global companies. Having this visibility and creating redundancy with multiple suppliers in your chain can potentially reduce or eliminate supply chain risks. These risks cost real dollars to companies and even more to consumers.
What steps could a company take to identify weaknesses in their supply chains?
Why would a company be averse to discovering problems in their supply chain?
Is profit to shareholders more important than providing safe products to consumers?
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