What Determines Supply Chain Risk in the Age of Globalization? Implications for Procurement and Logistics Risk Management

Abstract

Supply chain is one of the most important parts for the company and supply chain management plays an increasingly important role in business development. Supply chain risk has become a major obstacle to supply chain management, and it makes a deep influence on company`s operation and development. The intricacies of the supply chain network structure, the external environment of uncertainty and supply chain managers excessive pursuit of lean, making the supply chain is vulnerability and the supply chain is increasingly vulnerable to various risks impact. Lean supply chain system which more and more companies used can provide the potential benefits, but with the pursuing the ability to respond faster and at lower cost, this system is becoming more and more fragile, and the impact of risks and uncertainties should be more sensitive. Globalization let supply chain have become more uncertainties. The company`s procurement and logistics part have covered different countries or area, which lead to the supply chain risk higher than before. This paper analyses the background and definition of supply chain risk in procurement and logistics. And collect and analyse the risk management method to assess, evaluate, identify, and manage supply chain risk.