Our friend Dr. Uwe Schulte has an interesting approach to Supply Risk that he articulates over on Procurement Leaders. From his real-world experience in dealing with this issue, Dr. Schulte’s advice is both timely and definitely worth heeding.

There two important points here:

1. We’re hearing from many quarters that you can’t let up on Supply Risk once you see an uptick in GDP growth. Dr. Schulte explains that the stress of the recent recession means that a return to growth will actually put MORE stress on your supply chain.
2. Remember that the benefits from effective risk management aren’t just insurance-related but instead can also provide hard-dollar benefits from improved operations, efficiencies and supplier relationship.

Kris Colby is a Director in Ariba’s Spend Management Services group. Kris specializes in strategic sourcing and risk reduction with retail and CPG companies.