How We Should Tackle Risk in Global Supply Chains

Managing risks in a global supply chain can be a difficult task, as I argue in my new essay, titled Managing the Unknown: How We Should Tackle Risk in Global Supply Chains. Most importantly, there are substantial differences between two systems: “the company” and “the supply chain”. In a company it might be relatively easy to get an overview about all the risks that might occur. But a supply chain consists of hundreds, sometimes thousands of companies. Consider all the suppliers, suppliers’ suppliers etc. in an automotive supply chain. Approaches to manage risks that occur in a company are, therefore, not necessarily scalable to manage all the risks that occur in a system as complex and dynamic as a supply chain. As I also argue, we need to increase the robustness of a supply chain instead. Based on the results of our research, my essay presents both intra-organizational and inter-organizational factors that can help companies to increase the robustness of their supply chains.