Supply chain risk management refers to the application of strategies and processes to identify, analyze and mitigate supply chain risks. It involves collaborative efforts between partners in a supply chain network to evaluate potential risks across procurement, manufacturing, logistics and distribution. Growing global trade, complex supply networks and geopolitical uncertainties have increased the importance of identifying and mitigating risks in the supply chain. Supply chain risk management solutions provide tools for vulnerability assessment, scenario modeling, risk exposure analytics and corrective action management. Key features include monitoring risk events, assessing the impact of disruptions, collaboration with suppliers and maintaining regulatory compliance. With the growing complexities in supply chains, there has been a rise in demand for centralized solutions for risk identification and mitigation.
The Global supply chain risk management market is estimated to be valued at US$ 2.56 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the supply chain risk management are Resilinc, GEP, Oracle, SAP and MetricStream. These players provide tools and platforms for supply chain risk assessment, contingency planning and mitigation.
The key opportunities in the market include compliance management, risk event monitoring and supplier collaboration. Supply chain risk management solutions enable organizations to maintain visibility across the extended supply chain network and meet regulatory standards. Furthermore, these solutions allow companies to identify risks early and collaborate with suppliers to resolve issues quickly.
Global expansion of manufacturing and retail footprints drives the demand for centralized supply chain monitoring. Large multinationals are investing in digital tools to achieve end-to-end visibility and coordination across international supply chains. Supply chain risk management platforms facilitate cross-border coordination for issues resolution.
Market drivers
Rise in burden of chronic diseases- Healthcare sector is increasingly adopting supply chain risk solutions for medicine supply chain management. Centralized monitoring helps mitigate risks related to medicine shortages, counterfeits etc.
Growing geriatric (aging) population - Aging population drives demand for pharmaceuticals and medical devices. Robust supply chain is critical to ensure uninterrupted availability of products targeting elderly patients.
Market restraints
Budget constraints- Implementation of supply chain risk management platforms requires significant upfront investment and resources. This acts as a restraint for small and medium enterprises.
Data security risks- Centralized systems face risks of cyberattacks and data breaches. Ensuring security of sensitive operational data during sharing with partners is a challenge.
Segment Analysis
The Supply Chain Risk Management Market Demand can be segmented based on component, type, industry vertical, and region. Based on component, the services segment is expected to dominate the market during the forecast period. This is owing to increasing adoption of SCRM services by organizations to efficiently manage risks in their supply chain operations. The services segment includes professional as well as managed services that help organizations identify potential threats and take preventive measures.
Based on type, the strategic risk segment is likely to account for the largest share of the supply chain risk management market by 2030. Strategic risks arise due to external factors such as regulations, political instability, economic uncertainties, and natural disasters. They can severely impact supply chain operations if not addressed proactively. Key players are focusing on developing strategic risk management solutions to help organizations mitigate such risks effectively.
Global Analysis
The North America region is projected to dominate the global supply chain risk management market during the forecast period. This is due to early adoption of advanced technologies and solutions to improve supply chain visibility and resilience in this region. North America has a well-established economic and infrastructure framework, encouraging organizations to significantly invest in SCRM solutions. Meanwhile, the Asia Pacific market is expected to grow at the fastest pace during the forecast period. This is owing to rapid industrialization, growing e-commerce industry, and increasing outsourcing of manufacturing activities in the Asia Pacific region. Key players are positioning advanced SCRM solutions catering to diverse requirements of organizations across industries in fast-growing Asia Pacific countries.
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