Risk management practices, techniques and tools have
been used extensively in the financial community for
years. Risks with respect to a company’s supply chain
have begun to receive attention only more recently, as
the push to increase supply chain efficiencies has
illuminated the delicate balance between financial
considerations and those of the customer. During the
last twenty-odd years, supply chain management practices
have evolved toward more lean process approaches in
order to reduce waste within the overall chain. Concepts
such as just-in- time, virtual inventory, supplier
rationalization, and reductions in the number of
distribution facilities have reduced total supply chain
costs, but the result has been increased risk.
Trade-offs between achieving optimal supply chain
efficiencies and management of supply chain risk have
created a conundrum of sorts. pdf
