Modeling Political Risk in the Supply Chain

When we discuss supply chain risks, we often mention natural disasters, the changing price of oil, or something like a strike (at your facilities or at a port).

But, there are political risks to your supply chain.  The dramatic ones are the most obvious– like locating in a politically unstable country.  But, even in the US, changing laws and regulations can have an impact on your supply chain.  And, so you should add this category of risk to your reasons for better understanding network design and doing this type of analysis on an a more frequent basis.

I wrote more about this in my SupplyChainDigest column.


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