CHAPTER 8

Risk Management in SCM Settings

Introduction

The importance of SCM as a comprehensive approach has increased tremendously since the 1980s.* SCMs have evolved from separate entities of suppliers, manufacturers, distributors, shippers, and retailers to integrated and well-organized mechanisms. Consistent with this evolution from logistics to supply chain practices, companies are remodeling their structures and re-engineering their frameworks to face and handle the full coverage of supply chain activities.

When their practices turn naturally to SCM systems, some companies are still focused on their individual performance and functionality rather than on the entire chain achievements. Therefore, more important configuration and a continuous ...

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