by Supply chain risk management involves strategies and processes used to identify potential supply chain risks and disruptions and find ways to mitigate their impact on supply chain operations, costs, and customer experience. It helps companies assess areas vulnerable to risks like logistical failures, supplier failures, geo-political uncertainties and natural disasters. Supply chain risk management solutions help organizations monitor vulnerabilities through risk assessment tools and scenario modeling. They provide analytics-driven insights on threats to supply availability, transportation delays, inventory constraints, quality issues, and compliance gaps. With digital technologies like AI, IoT, cloud computing and mobility, organizations now have access to real-time supply chain visibility to identify and resolve issues proactively.
The global supply chain risk management Market is estimated to be valued at US$ 2.22 billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing geriatric (aging) population: The growing aging population is increasing the prevalence of chronic diseases worldwide. According to the WHO, chronic diseases are estimated to account for over 70% of all deaths globally. Supply chain disruptions can severely impact availability of critical medical products for this large population of chronic patients. Thus, healthcare organizations are adopting supply chain risk management strategies to ensure undisrupted supply of medicines and medical devices.
Rise in burden of chronic diseases: The increasing chronic disease burden is driving healthcare providers and drug manufacturers to strengthen supply chain resilience to prevent shortages. Supply chain risk management helps healthcare stakeholders closely monitor procurement risks, boost supply continuity and meet rising patient needs for chronic treatment and management.
Segment Analysis
The supply chain risk management market is dominated by software segment. The software solutions offered by various players help organizations assess risks across the entire supply chain to mitigate disruptions. Adoption of supply chain risk management software has been increasing as it provides real-time visibility of operations and alerts managers regarding potential issues.
PEST Analysis
Political: Governments across major countries are focusing on bolstering infrastructure to facilitate seamless flow of goods. Regulations pertaining to transportation and logistics are also being revised to minimize risks.
Economic: Rising global trade and complex supply chains have augmented the negative impact of disruptions. Organizations are investing in risk management solutions to minimize financial losses arising from uncertainties.
Social: Social media tools enable supply chain partners to collaboratively address issues. Transparency in operations also helps build trust among stakeholders.
Technological: Technologies like AI, IoT, blockchain are being leveraged by players to enhance risk prediction capabilities. Advanced analytics aid data-driven decision making for building resilient supply networks.
Key Takeaways
The Supply Chain Risk Management Market Size is expected to witness strong growth over the forecast period supported by growing complexities in modern supply chains. The global supply chain risk management Market is estimated to be valued at US$ 2.22 billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
The North American region currently dominates due to extensive adoption by organizations to ensure business continuity. \
Key players operating in the supply chain risk management market are LogicManager, MetricStream, Resilience360. These players offer customized solutions to help companies assess vulnerabilities, minimize disruptions, enhance collaboration, and strengthen supplier relationships. Advanced capabilities for predictive analysis and scenario modeling allow management of unforeseen obstacles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
