The annoyances that follow events like the recent arrests of suspected airplane bombers in the UK may eventually fade, but security concerns for cargo as well as passenger operations remain strong. How much does that cost you?
Companies are quick to capture savings by sourcing from low-cost countries, but they can come to regret the move if they fail to understand the risks of working with unknown and difficult-to-manage suppliers.
A serious component shortage five years ago led Hewlett-Packard to develop Procurement Risk Management, a combination of new processes and technology designed to help HP manage supply chain risk. This project was named 2005 winner of the Supply Chain Innovation Award.