Matt Davis

A member of the Gartner Blog Network

Matthew Davis
Research Director
3 years at Gartner
12 years IT Industry

Matt Davis is a Supply Chain Research Director and lead analyst for Supply Chain Strategy. Read Full Bio

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Supply Chain Risk Management: Black is the New Black?

by Matt Davis  |  August 2, 2012  |  1 Comment

Black is the new black?

Hype around “Black Swan Events” – large scale, unpredictable disruptions – is all the rage today in supply chain risk management.  But if black swans are supposed to be the outliers, then why does it seem like supply chains are being hit by so many each year?

The black swans were always here.  It is business that has changed.  Blame globalization and the internet.  Globalization has extended supply chains more than ever before, both demand and supply networks.  It is the extension of our supply networks around the world that has led to the frequency of risk events.  And the internet (along with the 24 hour news cycle) has given us exponential, real-time visibility to each disruption as it occurs.

I don’t see the trend of extending supply chains slowing any time soon, so buckle in for the bumpy ride.  The leaders in preparing for these disruptions are focused on what they call supply chain resiliency and are investing in four areas: multi-tier network visibility, supply chain agility, risk management and network modeling expertise.  Expect these companies to be better off when the disruptions occur.

I don’t think there are any more black swan risk events than there were in the past, we can just see them now.  Disagree?  Let me know…  The one thing we can ALL agree on is that the supply chain community needs to end the love affair with the term “black swan” … It’s so last season.

1 Comment »

Category: AMR Supply Chain Top 25 Supply Chain Risk Management     Tags: , ,

1 response so far ↓

  • 1 Niamh Allan   August 6, 2012 at 2:44 am

    Supply chain is constantly evolving and there are always new trends and issues in the market. Advanced demand planning and developing strategies can help the companies to ensure effective supply chain.