Supply Chain Risk Management

Supply chain risk management addresses vulnerabilities across sourcing, manufacturing, transportation, and distribution that can disrupt operations, increase costs, or damage customer relationships. Risks include supplier failures, transportation disruptions, quality issues, geopolitical events, natural disasters, and demand volatility. Strategies include supplier diversification, geographic distribution, inventory buffers, dual sourcing, and real-time monitoring. The 2021 Suez Canal blockage by the Ever Given container ship disrupted global supply chains for weeks, delaying $9 billion in goods daily and highlighting the vulnerability of single-point-of-failure dependencies in global logistics networks.