As 2019 comes to a close, it is important to reflect on the advances and changes in supply chain. Digital transformation continues to dominate business, and businesses are now interconnected to a myriad of vendors who supply critical services. Never before have organisations been so interdependent.
These networks represent a positive gain, allowing businesses to scale without necessarily needing specific in-house resources, and partnering them with complementary organisations. However, these third-party networks carry major risks, such as supply chain disruption and data breaches, which can have serious ramifications.
Disruptions can come in several forms, both abstract and physical: for example, political uncertainty, such as Brexit, can make supply chains precarious, while natural disasters, such as major hurricanes and earthquakes, can cause environmental barriers to regular operations. Cyber attacks are also a major cause of disruption, with a variety of severe potential consequences, including compromised sensitive data, regulatory fines and loss of reputation.
Therefore, organisations must ensure that they manage these disruptions proactively, constantly monitoring their supply chain for key risk indicators and responding according to the overarching business strategy. Utilising a risk management solution is the most effective way to supervise supply chain performance. For example, CyDesk aggregates risk data from up to 900 risk indicators, using artificial intelligence and machine learning to provide contextualised analysis to make informed decisions. Organisations can then mitigate common liabilities and proactively prepare for possible digital risks.
As businesses continue to adopt digital innovations for their supply chains, it is crucial that they also consider solutions for their inherent risks. Organisations that fail to address supply chain risk are only one major disruption away from seriously jeopardising their business operations. However, with intelligent tools such as CyDesk, organisations empower themselves to effectively and efficiently navigate their supply chain risk.