Inbound Logistics | March 2023

RISKS&REWARDS detect and mitigate associated risks is also advancing. These developments, such as the ability to perform sub-tier illumination and modeling from a command center, can greatly enhance supply chain risk management. In the near future, increased predictability in supply chain disruptions will be a game-changer for SCRM. EVOLVING WITH THE RISKS The risk and compliance landscapes continue to evolve, and businesses must aim to remain one step ahead. But with robust SCRM practices, companies can weather the storms ahead and best position themselves to succeed in the face of evolving threats. Knowledge is key. Knowing where you stand today, understanding the risks and regulations on the horizon, and being armed with real-time visibility into your supply chain can ensure your organization can thrive for years to come. n

can assist companies increase return on investment. By providing the exibility to quickly act and respond when supply chain disruptions occur, or new regulations come into effect, organizations have the ability to better overcome disruption and continue business as usual. Implementing robust supply chain mitigation strategies, including bridging and buffering, can help an organization prepare for what’s to come. Bridging means bridging the gap with suppliers to ensure communication is strong before, during, and after any type of crisis, including climate-related events. Buffering refers to inventory reserves that act as a buffer, or alternative supply sources should primary suppliers face disruption. Proactively implementing these mitigation strategies can help a business respond with agility in the face of disruption. As supply chain disruptions become more complex, the technology used to

in the coming year. This is particularly relevant in the wake of regulations that prohibit the use of goods made with forced labor. As a result, ESG principles are likely to be emphasized within supply chains in various regions. Additionally, the recent geopolitical disruption caused by the Russia-Ukraine conict highlight the potential impact of such disruptions on global supply chains. With tensions rising between China and Taiwan, organizations need to consider the impact that geopolitical disruption in Asia could have on their supply chains. BEGIN PREPARING TODAY Organizations shouldn’t wait for widespread disruption or a shutdown of company systems to strengthen their SCRM posture. Beyond the benets of having a clear, overarching view of an organization’s supply chain ecosystem, a robust SCRM program and framework

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March 2023 • Inbound Logistics 29

ICC =inventory carrying costs C =capital T =taxes I =insurance W =warehouse costs X =shrinkage S =scrap O =obsolescence costs R =recovery