In this first, of a two-part blog series on supply chain, I’ll discuss the security and operational risk in today’s supply chain.
In the past 20 years, we’ve seen the globalization of the supply chain and a significant movement to disperse supply chains outside national borders. With this globalization comes many supply chain risks — risks that go beyond just cyber attacks and demonstrate a need for stronger operational resilience.
Most organizations want to take advantage of tariff treaties and overall cost savings by outsourcing the manufacturing and production of their goods, resulting in greater operational efficiencies. However, much of this supply chain globalization has actually made our supply chain longer, much more complex and less resilient. Nowadays, a product may have to go through multiple countries before it’s complete, offering more opportunities for things to go wrong from a supply chain risk perspective.