Managing risk in global supply chains [chapter]

Paul R. Kleindorfer, Luk N. Van Wassenhove, Robert E. Gunther, Hubert Gatignon, John R. Kimberly
The INSEAD–Wharton Alliance on Globalizing  
With supply chains stretched around the globe, how can companies manage the inherent risks of moving raw materials, components and finished products across diverse cultures, currencies, and regulations? This chapter discusses two basic types of risk management issues in global supply chains: matching supply to demand and addressing disruptions to supply chain activity. On the first issue, there is much to be learned from options-based thinking and flexibility/risk-sharing features of
more » ... theory. Innovations such as B2B marketplaces, in particular, offer opportunities to manage and mitigate risks. On the issue of disruption risks, a body of literature on so-called "operational risks" provides guidelines for best practice in the identification of potential vulnerabilities and an array of response mechanisms for spotting potential problems before they become disasters.
doi:10.1017/cbo9780511522093.013 fatcat:sw3f5r3zu5gslauqc7wp6agyzm