Our new white paper “Essential characteristics of a supply chain risk management strategy“  provides a complete picture of a supply chain risk management strategy that, in large part, probably doesn’t surprise anyone responsible for managing supply.  It lays out well-defined components and disciplines needed to be able to proactively identify supply chain risks and mitigation strategies.  The paper also highlights the need to engage the right people in the process to arrive at an optimal solution.  Many companies have been doing these things for a long time but they have been missing some key ingredients that are needed for a comprehensive process.

In my experience, the missing ingredients have been associated with the systems and tools available to supply chain managers.  Those that resonate most with me are simulation and scenario comparison.  Even armed with powerful ERP systems and expert spreadsheets, it is very difficult, if not impossible, to quickly identify even one response strategy and be able to project its outcome on key measures of success.  Further, the ability to create and compare projected outcomes among multiple possibilities with supporting data is a luxury to most practitioners because the tools available just don’t provide comprehensive information in the time that actions must be initiated.

Supply chain managers armed with the new tools described in the paper will be empowered like never before to navigate troubled waters more effectively with multiple options for any disruptive event.

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Tags: Supply chain risk management
Posted in Supply chain risk management
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