Logistics firms seeking to fortify their supply chain strategies during the recession should consider the importance of effective risk management, experts have advised.
According to SupplyChainDigest, a new report co-written by former Whirlpool supply chain executive J Paul Dittmann highlights the importance of planning for potential crises.
He suggested that firms who continue with business as usual in the current climate are "playing dice with their future", claiming a serious revamping of supply chains is needed.
The report noted that there are more and more process and technology solutions becoming available to help companies reduce risk to their logistics.
Mr Dittmann suggested that firms who make use of these opportunities can not only prepare themselves more thoroughly for potential problems, but also gain an edge over their rivals.
"Although risk cannot be eradicated, it can be planned for and even used as a competitive advantage, especially since so few firms have a good risk mitigation process," the report said.
The advice comes after analysts at the Aberdeen Group recently claimed that a centralised and clearly-defined supply chain strategy is vital for businesses looking to remain responsive to customers during the recession.
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