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Glossary · Supply Chain

Supply Chain Disruption Risk

The potential for interruptions in the flow of goods, services, or information through supplier and logistics networks.

Full definition
Supply chain disruption risk threatens business continuity when suppliers fail, transportation routes are blocked, or critical inputs become unavailable. Root causes include natural disasters, geopolitical events, financial instability, quality failures, cyber incidents, and pandemics. Mitigation strategies include supplier diversification, safety stock, dual sourcing, geographic distribution, and supply chain visibility systems. The COVID-19 pandemic exposed global supply chain disruption risk as factory shutdowns, logistics constraints, and demand volatility created shortages ranging from semiconductor chips affecting automotive and electronics production to personal protective equipment critical for healthcare services.
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