ENSURING SUPPLY CHAIN EFFICIENCIES IN UNCERTAIN TIMES

Culture eats strategy for breakfast, to get risk management right, business culture is key. Everyone in the organization must feel empowered to speak up when they see a risk

- Shiv Bhambri

More than ever, the COVID-19 pandemic highlighted the importance of sound risk management strategies. Risks are, by their very nature, unpredictable. In the months leading up to the pandemic, few could have fathomed its devastating effects on human life and the economy. The leaders in the MRO (maintenance, repair and operations) sector took note and adapted as well.

As reported by McKinsey, supply chain disruptions occur on average every 3.7 years, and these disruptions can last from one month to several months. The world we live in is a globally integrated one that has complex supply chains that are more vulnerable than ever to climate change, geopolitical uncertainty, instances of cyberattacks, among a plethora of other factors that industry professionals are already alerted to. This fact alone necessitates a rethinking of the way risk factors are assessed and mitigated.

Management of Risk Challenges