Management of Supply Chain Endogenous Risk

Supply Chain Management has a significant influence on business goals and therefore provides competitive advantage, when designed appropriately in regards to meet business objectives. However, in Supply Chain management goals can be achieved in two ways: efficiently or effectively. While effectiveness means that achieving a predefined goal can be guaranteed even if conditions are adverse, efficiency refers to minimal spending of resources to reach this goal. The primarily purpose of a Supply Chain is to satisfy customer’s demand, the availability of resources and the functionality of Supply Chain processes, therefore, needs to be guaranteed.