Managing Supply Chain Risk

Managing supply chain risk involves identifying and addressing potential issues that could disrupt the flow of goods and services from suppliers to customers. This includes analyzing vulnerabilities like supplier failures, transportation delays, or natural disasters, and then developing strategies to mitigate these risks—such as diversifying suppliers, maintaining safety stock, or improving communication. The goal is to ensure smooth operations, minimize costs, and prevent interruptions that could impact customer satisfaction or profitability. Effective risk management keeps the supply chain resilient, adaptable, and able to handle unexpected challenges.