Supply Chain Risk Management

Supply Chain Risk Management

Nilay Dalal, Harshally Mutgekar, Rahul A Phatak, Paritosh Singh, S Mohammad Thajmeel,

Vedant Godse, Eddula Sujith Reddy, Mridul Nawale, Vaibhav Raghunath Bapat

The term "logistics" refers to moving materials and services along their supply chains from their raw form to their final form as finished goods. To boost customer value and gain a competitive edge, businesses should implement supply chain management strategies that streamline their supply-side operations. Manufacturers employ supply chain management (SCM) to plan and execute efficient and low-cost supply chains.

A supply chain includes every step of the production process, from making the product itself to overseeing the IT systems that support it. Typically, SCM will work to centralize all stages of production and distribution under one roof. By streamlining their supply chains, businesses can save money and work more efficiently (Baldwin, 2012). Improving the accuracy with which the company tracks production, distribution, and sales are vital to reaching this level of efficiency. As its suppliers' stockpiles, in addition to impacting modern businesses, globalization has increased corporate processes' pace, intensity, and complexity. Successful organizations cannot function without their suppliers. Thus effective supplier management is crucial.

Some of the global market forces include growth in the global economy is a primary driver of increasing consumer demand. The International Monetary Fund predicts that the GDP of both developed economies like the United States, Japan, and Europe and developing economies like Brazil, Russia, India, and China will continue to grow in 2019, albeit at a slower rate than in 2018. When demand rises, supply must also rise to keep up. Increases in the cost of labor have, over time, contributed to price and supply problems in recent years (Baldwin, 2012). The high cost of labor has consequences for international trade.