Supply Chain Resilience: Managing Risk through Intelligence

Today’s globalized economy demands efficiency and quick delivery times, with supply chains operating on tight schedules. Advances in technology mean that supply chain operations are more complex than ever. While these advances do improve the effectiveness and timeliness of supply chain management, they also increase risk. However, by keeping abreast of innovative technologies, using data analytics and risk management strategies, businesses can gain the necessary information and control over their supply chain to ensure its resilience and success. Visit this external resource to get additional information on the topic., immerse yourself further in the subject.

Supply Chain Resilience: Managing Risk through Intelligence 2

Anticipating Risks through Data Collection

Good data is key when it comes to supply chain risk management. Companies need to capture and analyze data about their suppliers, logistics providers, markets and competition to identify potential risk points. By using predictive or artificial intelligence modeling and data analytics, companies can anticipate disruptions, identify patterns and track potential future gaps in their supply chain. This makes it possible to adjust sourcing or transportation lanes, and to identify possible alternative providers, materials, or logistics options. In short, anticipating issues before they occur is the key to reducing risk.

Strategy to Mitigate Risk

When developing a risk management strategy, businesses must identify areas for improvement by analyzing their current supply chain data and performance. One way is to look at the supply chain relationships among key players (e.g. customers, suppliers, competitors, and regulators) and how the supply chain has been affected in the past by changes it is facing in the present, then evaluate the risks that arise from these various relationships. Businesses must then develop contingency plans to reduce their exposure to these risks, build buffer inventories and establish alternative lines of supply. This creates a contingency plan “what if” strategy that enables an efficient response when risks materialize enabling the supply chain to stay in operation until the issue is resolved.

Technology and Supply Chain Resilience

Technology can provide better visibility into the supply chain at all levels. Advanced digital systems allow businesses to track the movement of goods and materials and provide real-time information on delivery times. This translates into a better understanding of the risks involved. The IoT (Internet of Things) is allowing companies to fully integrate their logistics and supply chain operations. This increases transparency and speeds up problem identification, allowing issues to be quickly resolved. Technology can also be used to analyze and optimize loading and unloading schedules, delivery times and costs, reducing the risks associated with delays and other cost overruns.


Risk management should be an essential component to any supply chain strategy. In addition to identifying risks and developing strategies, businesses must stay vigilant in tracking and monitoring their supply chain to ensure that it continues to perform optimally. As technology becomes more integrated into supply chain operations, risk management and technology must also be correspondingly integrated to enable resilience. Prioritizing risk management and intelligence will strengthen supply chains and allow businesses to remain competitive in a constantly evolving marketplace. Read more about the topic in this external resource we’ve handpicked for you. Electronic Component Supplier!

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