Risk assessment of supply chain during new product development: Applications in discrete and process manufacturing industries

Supply chains have become increasingly global and complex over the years with manufacturers sourcing raw materials and components from geographically-dispersed suppliers. Reduced costs, access to capacity, focus on core activities, etc are some of the advantages associated with outsourcing different aspects of product development, manufacturing and logistics. However, managing a complex network of global suppliers and sub-contractors to ensure cost-effective, high-quality and timely deliveries has become a daunting task for practicing managers. Moreover, customers have become increasingly demanding and there is pressure on companies across industries to develop and launch a wide variety of products in shorter time. To manage a complex supply network, it is an imperative that supply chain decisions are made integral part of the new product planning. Any glitch in the global supply chain not only will raise costs related to the remedial actions which are required after the occurrence of the event but also can delay the launch of products with serious financial losses to the participating companies in the supply chain.