Risk management and paradoxical situations in modern supply chains
by Behzad Behdani, Researcher & Consultancy at Delft University of Technology on Sep 29, 2011
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Several new trends in the international trade, started in 90s and still part of the main paradigm in managing business, together with higher level of competition in the markets, generate two ...
Several new trends in the international trade, started in 90s and still part of the main paradigm in managing business, together with higher level of competition in the markets, generate two inherently paradoxical situations in managing today’s supply chains. Firstly, two main factors, higher number of risk sources in a supply chain and faster propagation of risk impact in the network, put companies in a more risky position; however and paradoxically, the access to the resources needed to manage those risks has become much more limited. The outcome of this paradoxical situation is growing vulnerability in supply chains and higher impact on the companies’ performance; having a smooth operation in supply chains and providing reliable service to the customers seem more challenging now. Coupling this fact to the highly competitive nature of business and growing expectation of customers, we may find 21st_century companies in a second-level paradoxical situation.
A description of these paradoxes and role of supply chain risk management is discussed in this document.
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