Most supply chain or procurement leaders consider themselves to be risk-takers, according to a recent roundtable we co-hosted with Supply Management Insider, but defining levels and types of risk is not straightforward. Calculated risk was a popular phrase, clearly separated from a more cavalier, “feet first” approach. Indeed, even the notion of being a “risk taker” at all was questioned, with “risk manager” being a preferred epithet for some. One described themselves as a “risk and opportunity manager”.
There are two categories of supply chain risk: resting risk (the known risks such as bottlenecks) and reactive risk (including pandemics). To manage a supply chain in both scenarios, procurement leaders need to have a clear understanding of where and how those risks can disrupt and challenge.
It is also becoming clear that there needs to be a more nuanced attitude to supply chain resilience. Procurement leaders are no longer required to deliver only on cost, they are becoming ‘value architects’ for their businesses.
Read this expert report, produced in partnership with Supply Management Insider (CIPS), as we discuss the dramatic change in risk over the past year and the possible routes to achieving true supply chain resilience. In this whitepaper we cover:
The shift in risk priorities
The effect of the pandemic and the nearshoring dilemma
Post-pandemic: The importance of Tier 2+ suppliers
The solution: How insight and data can transform your supply chain