According to popular research, supply chain risk is a very hot topic in corporate board room discussions. Thus, it is often practical to consider risk categories as a starting point for an initial value assessment of a supply chain. Besides supply risk, regulatory compliance is one of the greatest areas of supply chain concern.
“Increased market and business leadership pressure to account for supply chain risk has put intense pressure on vendor management offices to have deep visibility into the supply chain and a broad set of risk mitigation plans. Most companies, overwhelmed with this task, only track supplier health indicators that are easy to collect and plug into standard risk assessments. This approach inadequately separates the suppliers that may be in trouble from those that are truly at risk.” –Procurement Strategy Council