Supply Chain Resilience: a Risk Intelligent Approach to Managing Global Supply Chains

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Supply Chain Resilience: A Risk Intelligent approach to managing global supply chains Contents Contents 1 3 5 6 7 9 Preface A more complete view of supply chain risk? The four pillars of a resilient supply chain Resilience in action Building a resilient supply chain Ready. Set. Go. 9 Endnotes 10 Contacts 11 Nine fundamental principles of a Risk Intelligence program Preface This publication is the 25th whitepaper in Deloitte’s series on Risk Intelligence. The concepts and viewpoints presented build upon those in the first whitepaper in the series, The Risk Intelligent Enterprise™: ERM Done Right, as well as subsequent titles. The series includes publications that focus on roles (The Risk Intelligent CIO, The Risk…show more content…
But that’s just the tip of the iceberg. Risks are constantly evolving and can strike from almost anywhere – including sources that are new and unexpected. A more holistic approach needs to consider and address four distinct categories of supply chain risk (see figure 1). Macro environment risks are broad external forces that affect the entire business and supply chain. For example, globalization gives businesses access to less expensive labor and materials – and opens up vast new markets. But it also increases supply chain complexity and magnifies the impact of disruptions that in the past might have remained locally isolated -- such as natural disasters, political turmoil, piracy, and regional economic crises. This is probably the main reason “black swan” events seem to be increasingly common. Figure 1. Supply chain risks Macro environment risks Have potential effects across the entire supply chain Extended value chain risks Originate in upstream and downstream supply chain partners Operational risks Relate to internal process risks Develop Plan Source Make Deliver/ Return Demand Tier 1 3rd party services Distributors End users Extended value chain risks center around a company’s upstream and downstream supply chain partners. Increased use of outsourcing, for example, has improved efficiency and allowed businesses to

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