Risk in the supply chain and unexpected consequences

We've always known that risk in the supply chain is difficult to capture in totality and there has always been unforeseen risk lower down in the supply chain that results in significant problems.  The analysis from +MIT and +David Simchi-Levi.

Recognising the impact that problems in low cost component supply can have is important and recognising that the impact can be disproportionally greater than the cost of the item is worthy of note.  Without re-visiting our previous article on managing by clichés this is perhaps worthy of "ruining the ship for a ha'penny of tar".

The summary article in +Supply Management also raises the need for mitigation strategy.  The article and the need to manage risk are timely reminders following on from our recent article on the project management problems experienced by the BBC on its DMI project.

http://www.supplymanagement.com/news/2013/supply-chain-risk-occurs-in-unexpected-locations-and-components

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