Customer Focus on Risk Management in the Supply Chain Research Paper

Customer Focus on Risk Management in the Supply Chain - Research Paper Example As the discussion stresses there is a surplus of products but lesser customers. Organizations around the world compete to gain more customers, and one way of gaining more customers is to win their trust, answer and meet their needs and wants, and make sure they come back. It is not enough that they buy the company’s products – it is important that they come back. This is loyalty.   From this paper it is clear that risks are multiplying Risks are multiplying day by day, costing a lot for firms. In a survey of executives, they concluded that supply chain risk must be a part of strategic moves of organizations. Problems in supply chain have caused what executives call â€Å"margin erosion† while consumer demand cannot be immediately met and that supply chain problems have impacted the very â€Å"heart† of the business. The increasing complexity of business, the involvement of many stakeholders in business and the impact of globalization, along with the information revolution are some of the factors that add to difficulties in creating solutions to problems. Finch indicated that the firms’ experience with risk has increased with globalization and inter-organizational networking, and that their relations with small-medium-enterprises provided more risks in the supply chain. Risk results from the level of uncertainty and the impact of an event. Risks associated with management, like decision making, succession planning, skill acquisition and retention are influenced by organizational policies and procedures. Larger companies relegate their functions to specialist companies while SMEs conduct their own recruitment without delegating such function to a department. The result would be not having relevant skills for the company. Shortage of IS skills is a problem for smaller companies.