Risks
Opportunities
Overstretched Supply Chains
On top of regular operational challenges, shocks from cyberattacks, trade disputes, natural disasters, political upheavals—and, possibly, future pandemics—can stress supply chains that are already strained to the limit.
Sourcing Vulnerabilities
Raw material disruptions can stall production lines for up to more than one month every three and a half years, according to a recent report on supply chain risk and resilience.
Financial Losses
The cost of not acting on supply chain risk is high. Averaged over a decade, supply chain disruption losses can cost companies more than 40% of a year’s earnings before interest, taxes, depreciation and amortization (EBITDA).
Market Share Decline
Additional risks include permanent loss of market share to competitors that can sustain operations or recover from disruptions faster as well as the high cost of rebuilding damaged physical assets.
Security Vulnerability
Breaches in an organization’s digital supply chain threaten its core operations, trade secrets and customer data.
Advanced Technologies
Investing in emerging technologies such as analytics, the Internet of Things (IoT), robotics and digital platforms offers supply chains increased transparency and new ways to model and manage execution for accelerated responses.
People & Data Collaboration
Prepared organizations are learning to train their workforce with the digital skills required to build and run today’s supply chains. Combining machine learning (ML) and this human expertise enables visibility and transparency across the supply chain to better manage supply chain risk. Once trained, ML models save valuable human time, allowing experts to target and mitigate the most critical supply chain vulnerabilities.
Tax Benefits
The executive order will not lead to immediate tax policy changes, but companies can reap significant tax savings by proactively coordinating business and tax strategies around supply chains.
Click to learn about the business opportunities tied to prioritizing your supply chain and the risks of overlooking it. Then, read on to explore a road map for optimizing your supply chain today.
Industry consortia—such as trade groups and public-private partnerships—improve supply chain resilience by advocating for strong industry standards, interfacing with government and providing a venue for organizations to partner in solving these complex challenges together. Collaborations with communities, schools and universities and civic leadership can help bridge digital skilling and workforce gaps.
Consortia & Partnerships