In today’s global economy, a company’s supply chain is more important than ever. Historically, companies have outsourced portions of their business in order to see improvements in efficiency, pricing and quality.
But now, businesses face legislation, court cases and non-government organization initiatives regarding behaviors of business partners. At this point, more than efficiency is at stake. It becomes a matter of reputation.
Sources of risk
The truth is, most companies have placed risk issues in a silo, with legal specialists who are focused on one area only. Coward points out that businesses need to move past this, taking a look at how each aspect of supply chain management fits into the company and how individuals with varying expertise can work together to reduce risk.