The true cost of supply chain disruptions
There’s a good article on SupplyChainBrain.com (which is sponsored by Global Logistics & Supply Chain Strategies) entitled “Risky Business: The True Cost of Supply Chain Disruptions.”
The article says that while supply chain efficiency is important, companies need to focus more attention on reducing risk to their financial performance resulting from supply chain disruptions. It then goes on to talk about some of the risk factors and some ideas for mitigating that risk.
We see market leaders very focused on these issues. But, instead of just trying to improve their planning and execution, they are also investing in strategies to deal with the inevitable cases where unexpected “stuff” just goes wrong. Specifically, they are investing in building an organization-wide competency in responding to change. This is certainly helped by our software, but it’s an organizational mentality and commitment to first acknowleding that there are many problems today that you can’t plan your way out of and second, that you need to proactively develop the mindset and arm your employees with timely and accurate information and tools to respond to these situations.
