Managing risk in supply chains
A supply chain consists of the different activities that transform natural resources, raw materials and components into a finished product that is delivered to the end customer. For example, in producing sugar the supply chain might involve sugarcane farmers, processors, packaging manufacturers, distributors, wholesalers and retailers.
When one business within the supply chain fails to deliver their product or service to the next business in the chain, the entire supply chain can be disrupted. This can result in:
- reduced revenues
- decreased market share
- inflated costs
- damaged business reputation and customer confidence.
A business with a resilient and responsive supply chain will have a significant competitive advantage over other businesses. This guide explains how to identify and respond to risks in supply chains.