To keep operations running smoothly and customers feeling satisfied, companies need to be aware of the major risks that can affect their supply chain -- and how to avoid them.
Earlier this fall, Hanjin Shipping Co. -- the world’s ninth-largest container shipping company -- filed for bankruptcy to protect its vessels from seizure by creditors, yet the fallout has already left many vessels and cargo stranded mid-shipment. According to the Wall Street Journal, if the company fails to recuperate its losses, it “would be the largest container shipping failure in history, dwarfing all previous carrier bankruptcies.”
The financial and logistical issues that Hanjin has faced prove that no supply chain is invulnerable to potentially devastating disruptions. So how can companies identify and avoid major sources of risk before it’s too late?