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The Ebola scare. Early winter storms. Worries about possible labor strikes at West Coast ports. Currency shifts, deflation, and understanding the near-term impact of economic growth or economic stagnation. Tracking commodity, raw material, and highly volatile oil prices. All of these things–and many more–impact how supply chain professionals do their jobs today and will shape the supply chain practices that will be implemented in the coming quarters.
But do you know, with absolute certainty, how many of these events or a combination of them will change your supply chain strategy for better or for worse? Do you know which suppliers across your entire network would be most affected if a fire sweeps through a plant making a must-have raw material hard to get, or what backup plans exist if there is another port lockdown (the last one the West Coast saw in 2002 caused 11 days of supply chain chaos)? Can you estimate what the financial impact will be when the next supply chain disaster or disruption hits?
If questions like these have you scratching your head, you’re not alone. Supply chain risk and resiliency conversations stump many people these days.
According to Zurich’s 2014 Supply Chain Resilience Survey, an overwhelming 73.5 percent of respondents said they do not have full visibility of their supply chains, and only 26.5 percent of organizations coordinate and report supply chain disruptions enterprisewide. Additionally, 44.4 percent of disruptions originate below the tier-one supplier, and 13 percent of organizations do not analyze their supply chains to identify the source of the disruption.
You know what Resilinc calls this: Leaving money on the table. In today’s cost-sensitive and profit-pinched market, who wants to leave money on the table?
There are ways, however, to capture greater value from your supply chain visibility and risk management strategies while improving supply chain resiliency. And, you don’t need a crystal ball or magic wand to make it happen.
What you need is a change of perspective, and a way to plan, monitor, and protect your supply chain so that it remains responsive, flexible, and agile in the wake of a disaster.
For many companies, the conversation will lead to implementing a cloud-based supply chain software solution that can map suppliers, track events, and optimize supply chain practices. For other companies, it will lean towards business continuity planning or leveraging supply chain analytics to develop advanced sourcing capabilities. Both work in different situations. But, the fundamental point is that an enterprisewide solution that allows decision-makers to make quicker decisions and reduces the negative impact of a potential disaster is what’s needed in many value chains operating today.
Not convinced that there are jewels yet to be uncovered from your supply chain resiliency program?
Listen to our CEO Bindiya Vikal explain the value and ROI you’d see from a supply chain risk management strategy. Or download our white paper, “Cashing in on Risk Mitigation: The Business Case for Supply Chain Resiliency,” for more in-depth insight.
