Ford Takes New Approach to Supplier Risk Management

In 2012, Dr. David Simchi-Levi of MIT came up with a model and approach to answer tough risk management challenges. Using what he calls the Risk Exposure Index (REI), the tool enables companies really for the first time to quantify the risks in their supply chain, especially those stemming from the unknown unknowns, such as natural disasters, factory fires, etc. A number of companies across the globe in several industries have already adopted the REI approach. One of those is auto giant Ford Motor company, and Ford is sharing its new risk management strategy in a major new Videocast Dec. 3rd on our Supply Chain Television Channel.

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