The health of the financial infrastructure of an enterprise determines its survival in a hyper-competitive marketplace. A shaky financial supply chain system can have ramifications on the working capital of a business and risk its sustainability. All monetary transactions between an enterprise and its trading partners come under a financial supply chain system. These mainly include purchasing, manufacturing and selling goods and services.

Supply chain risk management plays a key role in managing the operations of enterprises engaged in manufacturing, retailing or any organization that is dependent on suppliers to achieve their business objectives. Managing supplier risks effectively helps organizations to avoid sudden disruptions in the supply chain.

The past two years have crippled the global supply chain and logistics; most businesses have slumped from the economic setback caused by the pandemic. Both logistics and supply chain management have stretched boundaries revealing inefficiencies and areas that need improvement.