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What does a logistics risk management plan aim to do?

Maximize profits without considering risks

Identify and mitigate potential risks in the logistics process

A logistics risk management plan is designed to identify and mitigate potential risks throughout the logistics process. This involves analyzing various factors that could disrupt operations, such as supply chain interruptions, transportation delays, regulatory changes, and other unforeseen events. By proactively identifying these risks, organizations can develop strategies to minimize their impact, ensuring smoother operations and maintaining service levels.

Through this approach, companies can optimize their logistics operations, enhance resilience against disruptions, and ultimately contribute to better overall performance. Focusing solely on profits, delivery timelines, or limiting the number of suppliers does not encompass the comprehensive risk management that is essential in logistics. Hence, the key aspect of risk management in this context is the proactive identification and mitigation of risks, which the correct answer highlights.

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Only focus on delivery timelines

Limit the number of suppliers used

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