Internal supply chain risks are those associated with the production and operational processes of an organization. They can be divided into two categories: operational risk, which includes factors such as labor availability, facility breakdowns, and supplier disruption; and strategic risk, which relates to the management of resources, quality control, and product obsolescence.
In today’s business world, these risks are ever-present, and they can have dire consequences for organizations. If not identified and addressed promptly, they can cause significant economic damages. Companies need to manage their internal supply chain risks effectively by understanding their operations, assessing potential risks, and taking preventive action when possible.