Global Supply Chain Complexity and Risk Management

Running page: Supply Chain 1
Global Supply Chain Complexity and Risk Management
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Executive summary

Supply Chain 2
The paper analyses the supply chain disruption as a major potential risk that has an
adverse effect on the global supply chain network. Supply chain disruption affect business along
the value chain up to the end customers and this has the potential of destroying the brand
reputation in the market. Cause of the supply chain disruption is listed as unplanned
telecommunication outages, cyber-attacks, loss or lack of skill, adverse weather changes, and
new regulations. The impacts or consequence of these supply chain disruptions include financial
challenges, loss of productivity, loss of productivity and poor delivery of services. There are
some strategies that have been suggested to assist in reducing the disruption of the supply chain
that affects the operation of the supply chain network. These strategies include diversifying the
supply base, development of technological backup, development of fall-back plan and
understanding the supply chain. These strategies have strength and weakness that influences their
ability to be implemented within an organization. The paper concludes by identifying the
importance of free-flowing supply chain without disruptions caused by various listed factors.
Table of Contents
Introduction.................................................................................................................... 4
1. Potential supply chain risks.......................................................................................... 4

Supply Chain 3
2. Causes of the supply chain disruption.............................................................................. 5
IT or telecommunication outage........................................................................................ 5
Adverse Weather changes............................................................................................... 6
Cyber attacks............................................................................................................... 6
Loss or lack of skills...................................................................................................... 7
New regulations........................................................................................................... 7
3. Effects of risk on the supply chain network.......................................................................8
4. Strategies to reduce supply chain disruption......................................................................9
Diversify supply base..................................................................................................... 9
Technological backup.................................................................................................. 10
Development of a fall-back plan..................................................................................... 10
Understanding the supply chain network...........................................................................11
5. Comparative analysis of reports...................................................................................11
Conclusion................................................................................................................... 13
Reference.................................................................................................................... 13
Appendices............................................................................................................... 17
Appendix I: Causes of Supply Chain disruptions in 2018.......................................17
Appendix II: Causes of supply chain disruption 2017............................................18
Appendix III: Consequences of Supply Chain Disruptions in 2018.........................18
Appendix IV: Consequences of Supply Chain disruption in 2017...........................19
Appendix V: Causes of Supply Chain Disruption in 2015.......................................20
Appendix VI: Consequences of Supply Chain Disruption in 2016..........................20

Supply Chain 4
Introduction
Supply chain remains an important aspect of the business that is connected through a
global network ensuring goods and services flow from producer to consumer. The free-flowing
supply chain has benefits to all stakeholders from producer to consumer. The breakdown in the
flow of goods and services in what is commonly referred to as supply chain disruption is
detrimental to all stakeholders. The supply chain disruption is a major risk and is multi-factorial
in terms of disruption causes and consequences. This implies that there is a need for strategies
that prevent or reduce the supply chain disruption for full benefit across the global supply chain
network. The following paper analyses various reports of the global supply chain network to
establish potential risk, causes, consequences and possible strategies to reduce risks.
1. Potential supply chain risks
The main potential risk within the supply chain is the supply chain disruption that has
resulted in huge losses reported in the past few years. Supply chain disruption is defined as the
breakdown within the supply chain that is attributed to various factors leading to disruption of
production and distribution of goods and services. There are many reasons for the supply chain
disruption that has a huge impact on the supply chain network. According to the reports, the
supply chain disruption has increased by 3% in 2018 reaching 73% as compared to 70% in 2017