Supply Chain Risk: Hidden Exposures for Your Company

March 18, 2011 - PRLog -- EDISON, N.J. (March 18, 2011) --- The ALS Group, an independent insurance and risk management  consulting firm, has published an article on their website (http://als-uic.com/resources.htm) offering a  comprehensive look at Supply Chain Risk Management. The negative effect of recent natural disasters on the global economy, resulting in supply chain disruptions, makes taking a thoughtful approach to this area more important than ever.

Recent events have resulted in unfavorable exchange rates, input and energy price increases, insolvency of suppliers, labor shortages, and political and social unrest.  Such disasters can have a devastating impact on a company’s supply chain.  After the tsunami and earthquake that recently hit Japan, businesses that rely on global supply chains face increasing uncertainties.  

More and more products are being outsourced to countries across the world.  The speed in which a natural catastrophe or political event can impact the supply chain underscores the need to proactively plan for contingencies and recourse.  Due to the diversity of vendor sourcing and an increase in outsourcing, supply chain risks are growing.  A risk review is an exercise that thoroughly assesses each supply chain structure, determining how susceptible your program is to a serious disruption arising from internal or external risks to the supply chain. Carefully examine supply chain processes to identify critical dependencies and the financial impact that a breach of these dependencies would have on your company.

To mitigate certain risks, a company needs to improve the collaboration with suppliers and partners. Working with key suppliers to help improve the way they identify and manage risk, will in turn, reduce your supply chain risk. Shift from single to multiple suppliers to minimize over-dependency and related vulnerability.

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ABOUT THE ALS GROUP
The ALS Group is an independent insurance and risk management consulting firm located in Edison, N.J. The firm does not broker, sell insurance or accept engagements from insurance carriers or brokers which results in an uncompromised view for clients.
For more information, visit www.als-uic.com.