Are Supply Chains Dropping the Ball on Risk Management?

Levels of risk in global supply chains continue to rise – even as companies' commitment to managing it goes in the opposite direction. A new report by A.T. Kearney and Rapid Ratings International finds that supply-chain risk management has declined as a priority within procurement organizations. Given the rash of supplier failures that occurred during the Great Recession, that's a difficult trend to understand. The top performers have implemented aggressive programs to deal with any number of potential supply-chain disruptions, but many others are falling short in that effort. On this episode, we talk with the co-authors of the new report, Rose Kelly-Falls, senior vice president of Rapid Ratings, and Carrie Ericson, vice president with A.T. Kearney Procurement and Analytic Solutions. They offer an explanation as to why companies aren't paying sufficient attention to risk management, discuss the macro trends affecting global supply chains, and lay out a means of quantifying the financial health of suppliers. Find out why ''there’s no glory in supply-chain risk management.''