Humans are Terrible at Understanding Risk
A 2014 survey of supply chain executives conducted by the Global Supply Chain Institute found that “many supply chain execs have done very little to formally manage supply chain risks.”
With so much on the line, why has there been so little focus on supply chain risk mitigation? Until recently, there have been no supply chain-focused risk management tools that enable organizations to manage both catastrophic risks (natural disasters), that result in major supply chain disruptions, and operational risks (port congestion), that destroy supply chain performance by a thousand cuts.