Speed of response is a
critical capability of dynamic supply chains and the key to mitigating risk and
swiftly implementing the changes that will make the supply chain still more
resilient. But response time hinges on the company’s ability to proactively identify
high-risk events, and to decide whether to design the operation to flex to
known risks—those that are unpredictable but relatively more likely to occur—or
to have contingency plans for the unknowable—risks that are unlikely to occur
but are potentially catastrophic.
The experience suggests
that being able to distinguish among and between risks is a key differentiator.
And there are predictive and real-time risk management technologies available
that companies can use, in combination with scenario planning and execution
technologies, to drive far greater levels of supply chain dynamism.
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