Supply chain risk management is a "reliable" management strategy that can improve business operations. The supply chain is a term used to describe the entire delivery process, from manufacturing through sales and distribution. Supply chain management is "a system for identifying, managing and controlling risks in a manufacturing-to-sale chain" by using advanced computer software. Supply chain is "a set of processes for obtaining raw materials, manufacturing processes, and products from the point of sale through customer return and service". For instance, in September 2021, a major tech giant in the U.S., Google Cloud, launched Supply Chain Twin Solution to augment end-to-end transparency and decision-making initiatives by collecting supply chain information from SMEs (small and medium enterprises).
The supply chain is complex and is prone to a number of risks. Companies need a solid supply-chain risk management strategy to deal with any potential defects or problems that could occur during the manufacturing process. The supply chain is also used to describe the entire delivery process from sourcing, through transport, to sale and consumption.
Supply chain resilience is a continuous process of evaluating and improving the operation of all processes in a supply chain system. In order to do that, organizations must have a thorough knowledge of each process and the factors that drive it. Organizations can use a variety of information technology solutions, from operational dashboards to a comprehensive information technology policy, to map the process. Information technology can reduce the cost of supply chain risk management strategies by improving the organization's ability to gather, evaluate, and act on information relevant to reducing risk.
Reduction of risks means increasing the efficiency with which supply chains are run. One way to reduce risks is to avoid activities that increase the likelihood of a problem. Elimination of errors, or as many as possible, is crucial to supply chain risk management. The identification and correction of errors is done primarily using the software. Automation is used to reduce manual tasks or eliminate them altogether. The software helps to ensure that any changes are done automatically, with minimal impact on employees or customers.