9.2 Risk Management o Outsourcing and offshoring imply that the supply chain is geographically more diverse and hence more exposed to various risks o Recent trends toward cost reduction, lean manufacturing and just-in-time imply that in a progressive supply chain, low inventory levels are maintained In the event of an unforeseen disaster adherence to this type of strategy could result in a shutdown of production lines because of lack of raw material or parts inventory 9-119-11 9.2 Risk Management ⚫ Outsourcing and offshoring imply that the supply chain is geographically more diverse and hence more exposed to various risks. ⚫ Recent trends toward cost reduction, lean manufacturing and just-in-time imply that in a progressive supply chain, low inventory levels are maintained. ⚫ In the event of an unforeseen disaster, adherence to this type of strategy could result in a shutdown of production lines because of lack of raw material or parts inventory