In an unprecedented ‘risky’ period, with a pandemic, climate change, a Russia-Ukraine war, geopolitical pressures, and much more, it is no surprise that global supply chains have recently been dealing with heightened risks.
However, it is key to keep in mind that such disruptions do not only occur in unfortunate periods of history. Risks are by nature ubiquitous and unpredictable, and that means that leaders need to embrace an approach that helps them mitigate, adapt and learn.
There is pressure from governments, consumers, and other stakeholders to disclose data about supply chains. Many governments have enforced or are in the process of drafting a law that requires companies to monitor their compliancy throughout their supply chains.
Supply chain risk management can be a valuable method to stay on top of regulatory requirements and changes in the marketplace that need to be anticipated.
With supply chain risk management in place, organizations can identify and recognize their critical supply chains risks. This includes analyzing the critical dependencies and failure points within the supply chain.
Gaining this insight is, however, easier said than done. Due to globalization, supply chains have become very complex and as a result, many companies have no visibility or control over their supply chains.
This is where technology enters the equation – with the potential to serve as a major differentiator. Companies can get fast insights in supply chains risk by integrating digital solutions that visualize and monitor potential supply chain risks for operations worldwide. A digital solution will facilitate the continuous monitoring of supply chain risk.