Effect-Oriented Supply Chain Risk Management Practices

2 Effect-Oriented Supply Chain Risk Management Practices 

Apart from improved forecasting of customer demands, a lot of risk mitigation potential resides in the design of products as well as in the layout of the manufacturing processes. Products can be modularized and components standardized so that the firm becomes more tolerant against the uncertainties on both supply and customer markets. In production and manufacturing, capacity buffers, stockpihng and flexibility are common measures. 

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Here, we decided to apply a different approach and to distinguish (1) cause-oriented practices and (2) effect-oriented practices of supply chain risk management. 

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