Global supply chain risk management

Abstract

With Liberalisation and Globalisation being the mantra for the growth of international trade during the last quarter of the 21st century, the companies which are local till now are turning global now. They are able to tap new sources for raw materials in Africa, South America; take advantage of the low manufacturing costs by outsourcing production to countries like China and South-East Asia; and capture new markets in Europe and the USA. The world is now a small global village and the companies are trying to leverage on the strengths of different players in their supply chain. With increase in the spread of supply chain, the risks involved with it are also increasing. This was clearly evident after the Fukushima incident in Japan as most of the Japanese automobile companies were not able to manufacture as their suppliers were badly affected in the disaster. There are a few companies in the world which have started risk management in their companies quite early and these companies are doing well in terms of profitability even in case of any potential risks.