New perspectives on global risk

摘要

Most enterprises have logistics and transportation risk management protocols that can address localized disruptions. Global supply chain risks, however, can have cascading and unintended consequences that no one organization can mitigate. Here are recommendations for managing the vulnerabilities. Thanks to globalization, lean processes, and the geographical concentration of production, among other factors, supply chain and transport net-works are more efficient than ever before. This increasing sophistication and complexity, however, is accompanied by increasing risk. Major disruptions in the past five years-including the global financial crisis, the Yemen parcel bomb scare, flooding in Thailand, and the Japanese earthquake and tsunami- have illustrated the vulnerabilities of finely tuned, closely interconnected supply chain and transport networks.