Logistics Risk Management: Preparing for Disruptions Before They Happen
In today’s unpredictable business environment, disruptions are not a question of if but when . From port congestion to geopolitical tensions, companies must proactively protect their operations. That’s where logistics risk management becomes essential. Instead of reacting to crises, businesses that plan ahead maintain continuity, protect revenue, and strengthen customer trust. This step-by-step guide explains how to prepare before disruptions occur and build a resilient logistics framework. Step 1: Identify Potential Risk Sources The first step in logistics risk management is understanding where vulnerabilities exist. Risks typically fall into several categories: Transportation delays Supplier dependency Regulatory changes Natural disasters Technology failures Conduct internal reviews and analyse historical data to pinpoint recurring issues. Collaborate with pr...