Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

PLUS+ Customer Service Support


Customer service for all PLUS+ subscribers is available Mon-Fri, 9am-5pm Eastern time.

Email: [email protected]
Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)
Mail: PO Box 1496, Framingham MA 01701-1496, USA



You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

Supply chain managers must be trained to “visualize” risk

According to Deloitte LLP, there are more than 200 current and emergent risks that may have an impact supply chains

By ·

Latest News

Third Party Risk: Too Close for Comfort
The State of the DC Voice Market
Oracle Modern Supply Chain Experience Promises to Address Key Industry Issues
Automated Storage: How to grow operations?...Make them smaller
DHL launches Global Trade Barometer
More News

Latest Resource

Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
All Resources
By ·

Supply chain managers should have learned some valuable lessons from last year’s Fukushima earthquake and tsunami in Japan, said industry analysts.

Kelly Marchese, a principal with Deloitte Consulting LLP, in the Manufacturing Operations practice, says that unfortunately, the threshold for risk has not moved much since that tragic event.

“We have not seen as much use of analytics as we expected,” she said. “This might be a consequence of denial, or a belief that another ‘black swan’ event is unlikely.”

But Kelly maintained that the cost of being unprepared for potential supply chain disruptions can be paralyzing.  Not all supply chain disruptions are publicized (in fact, most manufacturers would prefer to keep most of them hushed up) but they happen to most companies on a regular basis.

According to Deloitte LLP, there are more than 200 current and emergent risks that may have an impact supply chains. Furthermore, industry data shows that 85 percent of global supply chains experienced at least one disruption in the last 12 months.

Alarmingly, the vast majority of manufacturers do not have a plan in place to mitigate supply chain specific risks. The most vulnerable companies are those heavily reliant on lean logistics and the just-in-time distribution model. While this is not likely to give way to a “just-in-case” strategy, analysts concur that more risk mitigation should be introduced before the next cataclysmic event.

But trade-offs between achieving optimal supply chain efficiencies and management of supply chain risk have created a conundrum of sorts, say analysts for IBM, even though everyone recognizes that the consequences of disruption can be dire.

They report that those hit by unexpected calamities, on average, have a 14 percent increase in inventories, 11 percent increase in cost, and 7 percent decrease in sales in the year following the disruption.

At the same time, supply chain-related expenses are often the largest component of a company’s cost structure and ultimately determines profits. And because it’s the biggest opportunity to extract value, manufacturers may be unready to sacrifice ROI for another layer of security.

As a consequence, many supply chain management experts are advocating a layered approach when formulating a risk mitigation strategy.

This includes a careful evaluation of compliance documentation and risk-related metrics such as civil unrest, political tension, and vulnerability to natural disasters.

Having taken these steps, manufacturers are advised to quantify and prioritize risk by measuring the likelihood or impact of an event. Then they will be in a position to weigh risk against financial implications to develop a cost/benefit analysis.

Kelly is encouraging managers to “visualize” risk, and plan accordingly.

“Most companies still need to put one executive in place to manage risk,” she said. “They need a ‘throat to choke’ when something goes terribly wrong.”

Meanwhile, she advises managers to evaluate a range of analytical tools – off-the-shelf, customized, or configurable – being offered by software developers.

While a comprehensive “best of breed” solution has yet to emerge, the marketplace can support a variety of value-added service providers eager to enter this burgeoning supply chain management niche, said Kelly.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Article Topics

Security · Supply Chain · Technology · All Topics
Latest Whitepaper
Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
Download Today!
From the December 2017
This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals. As with years past, we’re also featuring several articles we trust will offer food for thought in your supply chain throughout the coming year.
Transportation Trends: The last mile, history repeating
Economic Outlook: A Complex and Uneven Scenario for Global Supply Chains
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
The Perfect Formula for Determining the Right Amount of Inventory
This webcast explains how the science of theoretical minimums, a new approach to inventory optimization, provides a simple and elegant way to reduce cost and increase customer service levels by monetizing time delays across the extended supply chain.
Register Today!
EDITORS' PICKS
Oracle Modern Supply Chain Experience Promises to Address Key Industry Issues
In many cases, system and data from different vendors are integrated frequently, in different...
Atradius Issues New Report on Supply Chain Risk in North America
The U.S. shows strong economic performance, but the looming risk that leadership in Washington will...

2018: The year we make meaningful progress on digital transformation
Perhaps it would have been better to describe it as a digital evolution – more of an ongoing...
Industrial and Supply Chain Real Estate Expected to Soar in 2018
Strong economy and insatiable demand for online shopping behind industrial real estate resurgence