Organizations must take a holistic approach in understanding their supply chain risks, especially the impacts geopolitical and financial health can bring, according to a new white paper by Rebirth Analytics.
Global events and natural disasters are a fact of life, creating disruptions in the supply chain and an organization’s financial health. COVID-19’s impact on business is just one recent example, as Tier 1 and Tier 2 suppliers worldwide were heavily impacted by border closures and lockdowns, creating a ripple effect throughout the business world. The disruptions created from these events create a domino effect, leading to financial distress and oftentimes, triggering chain bankruptcies within an industry or region, proving just how interconnected these two metrics are in the supply chain management process.
The key to optimal supply chain management is correlating parallel predictive analysis of geopolitical and financial health risk data, allowing organizations to implement proactive measures to be better prepared for when disasters or crises do occur.
“Supply chain disruptions created by the COVID-19 pandemic have made more companies truly appreciate the interconnected nature of risk in the supply chain,” said Chonchol Gupta, founder and CEO of Rebirth Analytics. “To obtain a holistic picture, companies need tools that simultaneously conduct multiple risk analyses and help business leaders understand the interconnected relationships of said risk. These insights give organizations a comprehensive overview on the risk profile of their entire supply chain, allowing them to prepare business continuity plans based on actual data.”
