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Inventory and supply chain risk
- If you have a car, you hopefully have car insurance. What's the value of car insurance? Well, if something goes wrong, you should be covered. The insurance can pay to repair your car or someone else's car. It can help with medical bills. Insurance can help solve some problems. In the world of supply chain, inventory is like car insurance. Inventory can solve most supply chain problems. Think about it. What are some supply chain risks companies deal with? Demand might increase unexpectedly. Customers might need a product right now. Why? Earthquakes, hurricanes, disease, war. They might create immediate, life-threatening needs for customers. Having lots of inventory will help your company solve your customer's problems. But inventory doesn't just solve customer problems. It can solve problems for manufacturers and suppliers too. For example, products could be lost, broken or stolen in the supply chain. Extra…
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