Transcription of 1. - Supply chain
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1. - Supply chain
1 2 1. Executive Summary: The Need for Supply - chain Risk management Modern enterprises increasingly find themselves relying on others for their success. Historically, enterprises have spent less than a third of their budgets on purchased goods and services, having relied on internal sources for these. Today, many enterprises spend most of their budget on purchased goods and services. This is in large part because of the advantages enterprises have found in strategies such as globalization, outsourcing, Supply -base rationalization, just-in-time deliveries, and lean inventories. In addition, many companies have consolidated operations both internally and externally to achieve economies of scale. While globalization, extended Supply chains, and supplier consolidation offer many benefits in efficiency and effectiveness, they can also make Supply chains more brittle and can increase risks of Supply - chain disruption.
3 This is a working document. Its contents reflect a collection of best-practice inputs from SCRLC members. The inputs on supply-chain risk management are, to our knowledge, unique, though based in part on previous works regarding supply-
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