can cut costs within a company, it is important to note the supply chain is not static but rather a continually improving model and adapt in response. A key part of designing the supply-chain network is ensuring the network is versatile enough to cope with future uncertainties. Though there is inherent uncertainty about the future, a supply chain network risk analysis can be conducted; by using information available, the future business environment can be characterized. The uncertainties associated with supply-chain networks fall within two categories, Endogenous uncertainty and Exogenous uncertainty. Endogenous uncertainty An uncertainty can be categorized as 'endogenous' when the origin of the risk is within the supply-chain network itself, such as market volatility or technological turbulence. Exogenous uncertainty An uncertainty can be categorized as 'exogenous' when the origin of the risk is external to the supply-chain network. Exogenous uncertainties can be further categorized; ongoing risks such as economic volatility, can be described as a 'continuous risk'. 'Discrete' events refer to infrequent events that could disrupt the supply-chain process, such as natural disasters. Risk management By distinguishing between these types of uncertainty, an organization can decide the best approach to risk management. A company has a very limited ability to prevent exogenous uncertainty. The risk to the supply-chain network can be minimized by being well prepared for potential events. Endogenous uncertainty can be somewhat mitigated with precautions such as regular communication between an organization and supplier. See also Document automation in supply-chain management & logistics. External links Building a Flexible Supply Chain Network from SC Digest End to End SCN Pilot Benefits from SCN References Supply chain management Radio-frequency identification de:Supply-Chain-Management es:Cadena de suministro