Supplier Capacity Risk

Supplier Capacity Risks encompass the full spectrum of capacity issues that can occur at a production, distribution or transportation tier of the supply chain. In modern, globalized supply chains, capacity failures at any point of the supply chain can produce damaging ripple effects which can result in businesses not being able to meet customer demand. In this regard, capacity can be defined as the volume of work that can be completed within a specified timeframe, or the ability for a supplier/manufacturer to provide the specified amount of goods and materials necessary for the proper functionality of a supply chain.