Internal versus External Supply Chain Risks: A Risk Disclosure Analysis

The globalization of factor and logistics markets, developments in modern information and communications technologies, and increasingly demanding customers are just a few mega trends in the last decade. In order to cope with these challenges many firms first reengineered their internal operational and organizational processes to cut costs, increase product and service quality, and remain agile in fast changing environments. But to stay innovative and competitive many firms recognized that internal improvements are too myopic. Therefore the management of supply chains (SCM) has become very prominent since the 1980s and is now widely regarded as one of the main critical success factors and considered as a key enabler of strategic change and source of strategic advantage for organizations.