Take care of your supply chain.
No firm is an island or isolated node in the Network Economy and, hence, must interact with other firms and with the consumers of its products and services. In order to be effective and profitable it is essential for a firm to compete. The quality of a finished (final) product depends not only on the quality of the firm that produces and delivers it, but also on the quality of the components provided by the firm’s suppliers.
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Disruption risk is risk which arise from natural disaster, such as weather disruption, or man made ones such as economic crises.
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Supply risk is defined as the probability of an incident associated with inbound supply from individual supplier failures
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Demand risk is the potential for a loss due to a gap between forecast and actual demand.
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Operational risk is the risk of loss as a result of ineffective or failed internal processes, people, systems, or external events which can disrupt the flow of business operations.
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Price risk is the risk that the value of a security or investment will de- or increase, respectively.
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Production errors or risks that incur with the used (raw) materials.
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Transportation risk is risk which come from Port strikes, Delay at ports due to port capacity, Late deliveries, Higher costs of transportation, and Depends on transportation mode chosen.
