Risk Management in Supply Chains

Risk management in supply chains involves identifying, assessing, and mitigating potential disruptions that could affect the flow of goods and services. This can include risks like natural disasters, supplier failures, or transportation issues. By analyzing these risks, businesses can develop strategies to minimize their impact, such as diversifying suppliers, improving inventory management, or enhancing communication. Effective risk management ensures that the supply chain remains resilient, allowing companies to continue meeting customer demands even when unexpected challenges arise. Ultimately, it protects the business's operations and helps maintain customer satisfaction.