By Paul Homchick-Oracle on Jul 14, 2014
It used to be that supply chain risk factors were mostly physical. Your supplier might have a fire, there might be an earthquake, an important shipment might get lost. But supply chain managers now need to deal with a wider array of possible disruptions to their supply chain.
Two recent news articles highlight the increased risks. As the world has become evermore interconnected, and as information expands and moves at the speed of light onto our desktops, social issues can be just as important as traditional supply chain issues. Intel recently announced that they had rid their supply chain of minerals from Congo sold by militias accused of human rights abuses. And Samsung suspended operations with a Chinese supplier who has been accused of employing under-age labor. Today, when threats to your supply chain may arrive via an act of God, or appear in an exploding flurry of Twitter messages, it is important to plan for disruption, and to have the tools in place to develop low cost strategies for dealing with disruption.[Read More]