Supply chains: ever more efficient, ever more vulnerable?

This discussion will focus on the current trends in supply chain management that have made delivery channels more efficient, but also more vulnerable, and ask how can we improve the efficiency and reliability of supply chains. Mostly, they are just-in-time practices, cost reduction, economies of scale, outsourcing non-core activities and consolidating suppliers. However, while these practices have a lot of successful examples, there are also risks emanating from the widespread adoption of these practices. These trends can result in supply chain vulnerability by decreasing flexibility and reducing the redundancy in the supply channels of critically important goods below levels prescribed by prudent long-term risk management. Other issues include the cascading impact of disruptions, potential loss of control and geographically stretched supply lines. How can supply chains be made both more efficient and more reliable? What is the proper balance between optimising costs and ensuring that global supply chains are robust?