The article states that, the chain of supply in the business world today is becoming more complex with the complex changes that are currently happening simultaneously in the world. That, according to the author, may in a way increase the magnitude of risks business managers have to endure. From a recent survey on many business executives coming from various manufacturing and retail companies, it got discovered that the supply chain risks are increasing and becoming more expensive.
The supply chain risk has become a very important matter considering the rising number of risks in the supply chain. Risk events have become more costly and, therefore, are significant in the making of key decisions. Huge impact on business is as a result of the sudden changes in demand and marginal erosion in the businesses as they try to keep up with the changes. There is a rising concern on the extended value chain by the business executives than the other internal risks. In Holbrook’s article, management of the supply risks in the businesses is not bearing fruits as the managers would have expected. These executives face a broad spectrum of challenges with no individual challenge standing out. It has made it important to adapt strategies to combat these challenges in a broader sense. However, many companies do not have the latest tools and technologies to deal with the evolving supply chain problems efficiently.
In conclusion, the author notes that the cause of the alarm is that only about half the executives surveyed are confident their companies have managed these risks or can cope in the first place. The growing of strong relations, flexibility to quickly adapt to these changes, and effective continuity plans got cited as the most promising strategies to use. It, however, did not indicate how the companies represented in the survey coped with the supply chain risk. The solution is to keep up with these changes and learn from past experiences in order to manage these supply chain risks.
Works Cited
Holbrook, Emily. The Growing Problem of Supply Chain Risk. Risk Management Monitor, 2013. Web. 2014 Nov. 25. Retrieved from http://www.riskmanagementmonitor.com/the-growing-problem-of-supply-chain-risk/
