Supply Chain Management
4 min read
24 April 2025

Why supply chain risk management is the answer to supply chain chaos.

Jeroen Scholten
Author
A truck driving in snowy weather conditions.

In today’s volatile market, supply chain risk management has become a boardroom priority. Disruptions are no longer rare events. They are frequent, complex, and expensive. Companies that fail to prepare face hidden costs, lost revenue, and shrinking margins.

At Caliber.global, we believe unpredictability is not the enemy. It is part of reality. And with the right approach, it can become a source of competitive advantage.

The true cost of being unprepared

Modern supply chains are vulnerable. A delayed shipment, a sudden factory shutdown, or political instability in a sourcing region can disrupt operations in unexpected ways. These supply chain disruptions trigger both direct and hidden costs. Some are obvious, like emergency shipping or sourcing from a different supplier. Others are harder to spot—excess stock, underused labor, or longer lead times. Over time, they quietly erode profitability.

Our eBook, Unpredictability – The biggest margin killer in supply chain, explores how these costs emerge and what supply chain leaders can do to minimize them.

Why old methods are no longer effective

Traditional approaches to supply chain risk management rely on historical data and manual workflows. These methods were built for steady conditions. But the world has changed.

What is needed now is not just better planning, but better systems. Organizations need real-time supply chain visibility, smart decision-making tools, and integrated communication across their networks.

That is why we developed Tract, our Supply Chain Collaboration Platform. It helps businesses understand what is happening across their supply chain, run simulations to prepare for risks, and respond with speed and confidence.

Understanding the sources of risk

Effective risk management begins with identifying potential threats. These risks can come from both outside and inside the organization.

External risks include:

  • Political events, such as trade restrictions or sanctions

  • Weather-related disruptions and natural disasters

  • Global health crises

  • Cybersecurity threats

  • Shifting consumer demand

Internal risks include:

  • Lack of data sharing across departments

  • Inaccurate demand forecasts

  • Manual processes that slow down operations

  • Limited flexibility in logistics and sourcing

Supplier-related risks include:

  • Over-reliance on a single vendor

  • Communication breakdowns

  • Long lead times and low visibility into upstream supply

These types of supplier risk can quickly impact production schedules and customer commitments. Without clear insights into these factors, organizations are left reacting instead of preparing. Caliber.global supports clients in identifying these vulnerabilities early and taking steps to reduce their impact.

Moving from reaction to resilience

Risk cannot always be avoided, but it can be managed. The difference lies in preparation. By using predictive analytics, real-time data, and connected platforms, companies can anticipate disruptions and act faster.

For example, when extreme weather hit production facilities in Texas, one of our retail clients faced delays in material availability. With help from our Supply Chain Collaboration Platform Tract, we quickly activated alternative suppliers and adjusted transportation plans. All store launches proceeded as planned.

This is the power of supply chain visibility and proactive planning. Decisions no longer rely on guesswork but are based on live data and smart simulations.

Less inventory, more control

One common response to unpredictability is to build up inventory. But stockpiling comes at a price. Storage costs rise. Working capital is tied up. Products risk becoming obsolete.

Instead of relying on buffers, we help clients build responsive and flexible networks. With early warning systems, multiple supply options, and integrated logistics planning, businesses can operate with lower inventory levels and still meet demand with precision.

In one case, a food industry client moved close to a zero-inventory model. This was not just due to better planning, but because their supply chain was designed to adjust in real time.

Turn risk into opportunity

Supply chain risk management is not just about avoiding problems. It is about gaining control and building confidence. With the right technology and the right partners, businesses can become more agile, more efficient, and better prepared for whatever comes next.

At Caliber.global, we combine smart tools like Digital Twin with decades of supply chain expertise. This helps our clients simulate disruptions, reduce waste, and protect margins, while significantly improving operational efficiency across the entire chain.

Ready to gain control over risk in your supply chain?

Download our free eBook: Unpredictability – The biggest margin killer in supply chain. Discover how to turn uncertainty into strength and protect your bottom line.

Download your eBook.

In today's complex logistics landscape, unpredictability is more than an inconvenience — it's your greatest margin killer. But what if you could turn uncertainty into opportunity?

Mockup eBook about Unpredictability in supply chains.
Jeroen Scholten
Author
Jeroen Scholten CEO and founder of Caliber.global, holds a MBA in retail management and has worked his entire life in supply chain. He has completed an executive growth program of 5 years and awarded with high growth award.

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