As a continuation to the ongoing discussion regarding Supply Chain Risk that has become part of the mainstream media focus today, some basic research allows us to see that a year ago these topics were being spoken about. Obviously, the recent natural disasters have made them ever more relevant. FM Global recently re-released their 4/2010 piece on supply chain which merits a read. It describes tools for increasing supply chain resiliency and implementing strategies that mitigate risk in efficient, cost-effective ways.
Within that publication they referenced a blog that was posted to the Harvard Business Review 2/2010 titled “Supply Chain Risk: It’s Time to Measure It.” Even though this was posted February of last year, the concepts are still the same. It explains how the supply chain is the “lifeblood” of the corporation. If the proper measures are not taken to mitigate the risk involved with the supply chain, how can you be ensured that your business won’t be affected if there is a disturbance in the supply chain?
Becoming more aware of your company’s supply chain risk and the effect it can have on the Total Cost of Risk (TCoR) for the company is an essential (and now, almost mandatory) part of any company’s risk management program.
To read the “Supply Chain Risk: It’s Time to Measure It” blog posting click here.
