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Next Year Will Demand Greater Supply Chain Risk Assessment

Supply chain risks will need to be reassessed in 2012.

The trend in the years following the financial crisis was for corporations to trim their operating costs and create leaner supply chains. A failure to optimize the network of suppliers and business partners could create lost sales

The trend in the years following the financial crisis was for corporations to trim their operating costs and create leaner supply chains. A failure to optimize the network of suppliers and business partners could create lost sales, lower assets and higher costs, according to JDA Software.

Going forward, organizations will also need to devote more attention, time and resources to assessing and reducing the risks that come with those cost savings, according to Progress Software Corporation.

Henry Hicks, the supply chain industry vice president for Progress Software, said in a statement that many companies would continue to make lean chains the focus of their strategies. However, this will have the negative consequence of greater risks and exposures to unplanned events, he said.

"Those organizations that are able to quickly recognize changes in the supply chain and quickly implement a plan of action to circumvent the issue will be real winners over the coming year," Hicks said.

The company also made a number of supply chain assessments for next year, including the claim that businesses do need to plan for averting risk, but they need to acknowledge that even the best strategies are only 50 percent accurate. With that in mind, CFOs and supply chain managers will have to work together to devise plans that set ultimate goals and the direction, while also creating an approach that is flexible to unexpected events.