Imbalances and the global supply chain gridlock require companies to react to emerging issues quire companies to to emerging issues

Imbalances and the global supply chain gridlock require companies to react to emerging issues quire companies to to emerging issues

» Most organisations have focused on risk mitigation rather than risk management and often created more exposure and vulnerability by doing so . Risk management is a holistic view on the organisation ’ s activities , risk appetite , risk capacity and vulnerabilities . Risk mitigation , however , is much more single issue focused and reactive in nature trying to solve specific risk events or vulnerabilities one by one . This created fragile supply chains without supply ecosystems developing towards higher purpose over time . Those supply chains can be stuck in cost efficiency stages - or worse even in long term single or sole source chains . Events of the last few years have created significant impacts operationally but carry a bigger issue that is impacting strategic objectives like profitability , market share , competitive position and share price . Strategic performance indicators are harder to recover and often require significant additional investments that add to the opportunity costs .

» Many organisations struggle with having insights and visibility into their supply chain . The 2021 Gartner Supply Chain Risk and Resilience Survey found that visibility improvements were among the top three most important areas of improvement to supply chain risk management at 70 % ( and 83 % among enterprises that have revenue above US $ 1bn ). 40 % of respondents mentioned visibility as the top area of improvement . This is based on the lack of a complete view into the supply network .