MIT News features a new report entitled, Making the Right Risk Decisions to Strengthen Operations Performance, that “validates five key principles that companies can use to better manage risks to their supply chains and prepare for future opportunities.” The report, produced by the MIT Forum for Supply Chain Innovation and PricewaterhouseCoopers (PwC), is based on the results of a 2013 Global Supply Chain and Risk Management Survey. Here are the five key principles (directly quoted):
- Supply chain disruptions have significant impact on company business and financial performance.
- Companies with mature supply chain and risk management capabilities are more resilient to supply chain disruptions. They are impacted less and they recover faster than companies with immature capabilities.
- Mature companies that invest in supply chain flexibility are more resilient to disruptions than mature companies that don’t.
- Mature companies investing in risk segmentation are more resilient to disruptions than mature companies that do not invest in risk segmentation.
- Companies with mature capabilities in supply chain and risk management do better along all surveyed dimensions of operational and financial performance than immature companies.