10 Tips to Mitigate Supply Chain Risk
Supply chain risk comes from many areas, including natural disasters, acts of war or terrorism, supplier bankruptcy, theft, damage and data breaches
In a recent survey, 70% of companies reported at least one supply chain disruption in the past 12 months. And more than a third of companies attribute at least a quarter of their disruptions from their external inbound supply chain. Companies must develop plans to prepare for, and help reduce, the impact disruptions can have on their bottom line.
1. Evaluate and Identify Current Risks.
Take a critical look at your business and identify areas with risk exposure. Identify and evaluate potential supply chain disruption scenarios.
2. Prioritize by Probability and Impact.
Covering every scenario is impossible, so prioritize potential risks by the likelihood they could actually take place. Then estimate the financial and brand impact of each event. Develop mitigation contingency plans, starting with the most likely and highest-impact risk scenarios.
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