Examining Operational Risks in Supply Chains

In an effort to offset the effects of increasing levels of global competition, demanding customers and employees, shrinking product lifecycles, and decreasing acceptable response times on success in the marketplace, many organizations have become members of formalized extended enterprises known as supply chains. These entities can be described as organizational networks designed to help firms achieve a competitive advantage via improved market responsiveness and cost reductions. Moreover, supply chains can provide organizations with a means for promoting business innovation through the adoption of streamlined information flows, restructured business processes, and enhanced collaboration among network members (Sawhney, Wolcott, & Arroniz, 2006).