As supply chain professionals continue to work through disruption, old ideas about how to practice effective supply chain risk management are still far too common.
In fact, the nonstop chaos of the pandemic era has reinforced past tendencies to react to one emergency after another. Companies then scramble to cope with allocations, leap into crisis mode in response to shortages or delays and overspend to quickly procure from alternative sources. Though understandable, this strategy is counterproductive and should not be considered a long-term solution when it comes to managing supply chain risk.
As organizations build out more robust supply chain risk management programs for a post-pandemic world, it’s important to understand what to be aware of and what mistakes to avoid. Following are five mistakes companies make when it comes to supply chain risk management and how to remedy them.
