Managing Risk
Today’s economy has created the need for supply chain managers to evaluate their organization’s balance between cost optimization and risk management. According to this Logistics Management article, written by associates at Accenture, there are now three areas of potential supply chain risk that should be of top concern to managers: vendor and supplier stability, product quality and safety, and demand forecasting. The authors believe that it’s important for companies to re-visit and re-evaluate previously-established fundamental assumptions about risk. According to them:
One such assumption may be the sanctity of short-term cost savings and returns-not always the best idea if longer-term stability and improved positioning in a much tougher business environment are compromised.
Just something to keep in mind while working to ensure your business is “recession-proof.”
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