Risk Analysis for Strategic Sourcing

Abstract: Today, the global marketplace enable supply chains to be spread out and linked across the world, thus increasing the nodes and parties involved. This combined with customers expecting the same or increased product availability has increased the need of an agile and robust supply chain. In order to achieve this, it is of vital importance for companies to be aware of and know how to work with their supply chain risk environment. The first step in understanding the risk environment is to identify which risks the company is subjected to. The identified risks then needs to be assessed based on criticality and the most critical risks need to be actively and proactively mitigated.