What Are the Risks of an Extended Supply Chain?

What are the risks of an extended impart drawing string? In order to remain competitive, a company must offer brag quality goods or services at the lowest prices possible. Supply bowed stringed instrument enables a company to reduce the cost while increasing the efficiency. However, thither are risks that are associated with such benefits. These issues should be properly addressed when a company is trying to rely to a great extent on supply range management in order to stay competitive wi scale down its industry. A company is exposed to risk by sharing confidential schooling to its vendors.For example, Apple recently reported that arts and specs for both the iPh unmatchable 5 and the iPad mini leaked out well before their release dates. Apple criminate its vendors for information leak. Apples security practices are targeted marking reliable US employees dont leak stuff, but everything comes out from china now. A company is held accountable for its vendors being socially re sponsible. This includes making real that vendors do not employ minors. For example, Nestles cocoa supplier, pearl Coast, failed to pass the Fair Labor Associations inspection because it utilize children to process cocoa.Nestles held accountable for Ivory Coasts infringement of FLA, it will seriously cost the companys image as well as its profits. While a proper supply chain management produces cost effective products, there is a setback as it is difficult to quality control products that a vendor produces from oversea. For example, in 2007, Toys R Us vendor Mattel produced 83 products containing lead based paint, which is hazardous to health. Consequently, Toys R Us had to recall 967,000 affected toys from reaching consumers. A natural adventure or political instability of a vendors orbit could affect a companys operation.For example, Dallas-based Texas Instruments said late Monday that it had suffered substantial damage to its production plant in Miho, Japan and slight dama ge to its Aizu-wakamatsu plant. Both facilities are located north of Tokyo in the areas much or less affected by the disaster. The company makes silicon wafers at its Miho plant, which are the thin pieces of silicon glass used to manufacture microchips. In conclusion, for those companies that rely heavily on extended supply chain management to remain paying(a) should consider the following strategies to avoid the risks mentioned above.First, a company should realize more flexibility. Flexibility, in this context, means that a company should incorporate a vendor-auditing curriculum to make sure that it is meeting your standard. Second, a company should only dower non-confidential information to its vendors to prevent them from compromising vital information. Lastly, a company should have multiple vendors to run a project in case one vendor fails to complete the project on timely manner. These are the refer preventive strategy to avoid or mitigate the risks of a supply chain man agement.