Cyber is now one of the top risks coming from your supply chain. When you also consider ‘suppliers’ that you have no commercial relationship with, like all of those open source libraries that your applications depend on, then it becomes a full time job to track and mitigate…:
Procurement professionals must consider many factors when working to protect their organizations from risks — from reputational problems, compliance issues, changing regulations to cyber security and social responsibility.
“There have been significant increases in the level of risk in the supply chain,” said Vikas Kumar Yadav, GEP’s senior director for consulting.
He points out that offshore sourcing from low-cost regions and lean manufacturing as a couple of the top reasons for the increased risk.
The report said that the array of risk events go from things that businesses can’t control to ones they can be vigilant about to mitigate problems. As supply chains become more complex, external risks like natural disasters and geopolitical risks can be difficult to prepare for, whereas risks like quality control issues or mechanical failures can be easier to predict. (See the chart below.)
Source: Report by WBR Insights, GEP, GRMS