Supply Chain Management

Risk Matrix for Handling Supply Chain Disruptions

By Bill Remy

May 9, 2024

While building a risk matrix for the Red Sea crisis is a must for manufacturers, you should still take a step back even further.

Today it’s the Houthi rebels seizing containers in the Red Sea, but tomorrow it could be a traffic jam in the Panama Canal, a hurricane that hits a major shipping port or a public health emergency that shuts down suppliers.

A risk matrix provides a strong defense, but a solid risk-management strategy should include an aggressive offensive. Consider tactics like dual-sourcing materials and supplies, nearshoring manufacturing, or reshoring the supply chain. 

Bill Remy, TBM’s CEO, talks about some questions and recommendations manufacturers should ask themselves when developing a risk matrix for handling supply chain disruptions:

  • What can go wrong?
  • What’s the likelihood of it happening?
  • What is the impact? 
  • What will we do?
  • How well will it work? 
  • How long will it last?

 

Read More On Supply Chain Brain →

 

Meet the Expert

Bill Remy

Bill Remy

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Bill Remy is the CEO of TBM Consulting Group and serves on the TBM Board of Directors. His career expertise includes deep knowledge of operational performance improvement, site transitions, acquisition integration, new product development and supply chain management.

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