Posts categorized as 'Supply chain risk management'

Big Ideas in Supply Chain | Lippert Components: Unexpected Benefits of Kinaxis

SarahHarkins

Watch Big Ideas in Supply Chain with Lippert ComponentsIn any given year, your company manages a variety of risks that threaten to jeopardize your supply chain operations.

In 2018, Lippert Components had acquired multiple businesses, and it was projected to continue growing in 2019. It was a stellar year for the company, but this growth also brought challenges. Lippert Components had to integrate its new acquisitions into its existing reporting practices.

At the same time, its global supply chain was facing new tariffs. Luckily, Lippert Components’ supply chain planners turned the company’s risks into opportunities…

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Big Ideas in Supply Chain | Keysight Technologies: Risk recovery after a natural disaster

SarahHarkins

Watch our newest Big Ideas in Supply Chain Imagine that three natural disasters hit your global supply chain within three years. For Keysight Technologies, this isn’t a hypothetical scenario. Between 2015 and 2016, earthquakes in Japan and explosions at a container storage station in China affected parts of the company’s supply chain. Then in 2017, the Tubbs wildfire burned down two structures at the company’s headquarters and damaged others.

What could have been a series of business fiascos was not. The company had continuity and disaster recovery plans in place, and supply chain employees routinely ran drills to prepare for potential issues.

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Are you sure you’re making the best supply chain decisions?

AlexaCheater

Successfully managing your supply chain means making decisions. A lot of them.

But the reality for many is that the tradeoffs and choices they’re making are based on outdated or inaccurate data.

How can you be sure you have the information and insight you need to make the best supply chain decisions possible for your business? Today’s planning reality leaves too much room for uncertainty. Siloed and sequential data and processes don’t deliver the visibility you need.

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To do: Prepare supply chain for natural disaster

MikeMcAllister

To do: Prepare supply chain for natural disaster“It will never happen to my supply chain,” said the first planner.

“We’ll sort it out when the time comes,” said the second planner.

Perhaps these fictional quotes resonate a familiar refrain. After all, on the list of things to do when managing your supply chain on a daily basis, ‘prepare for natural disaster’ likely sits far down the list, somewhere between ‘submit expenses’ and ‘organize file folders.’ I totally get it.

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Webinar: Supply chain strategies to combat a brave new trade world

MikeMcAllister

Webinar: Supply chain strategies to combat a brave new trade worldAldous Huxley had it right — it truly is a brave new world, and it is especially so when it comes to tariffs and trade. And for organizations with even moderately complex multinational supply chains, the mounting challenges are the most significant that they’ve faced to date. A fresh set of supply chain strategies are need, the quicker the better.

In addition to dealing with a forever multiplying list of SKUs driven by market demand, the trend toward engaging contract manufacturers continues to grow, and an ever-expanding list of commerce channels is making supply chain management more challenging by the hour. Combine this with an uncertain trade environment with unprecedented market volatility and the impact of ongoing legal, regulatory and taxation changes, and you have a perfect supply chain storm brewing.

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Good-bye siloed, functional planner. Hello storm chasing network planner.

BillDuBois

natural disasters If you had anything to do with supply chain planning in the early days of enterprise resource planning (ERP), you may consider those years the “good ol’ days”. Spreadsheets were the latest and greatest thing, your biggest headache was a supplier failure, and collaboration meant walking down the hall to visit with your buyer or dropping by the shop floor to check on a machine breakdown.

Times have changed. Supply chain planners (I’m lumping in all the silos, including demand, supply, inventory and capacity planning) today are dealing with challenges that were unimaginable when Lotus notes were the next big thing. Arguably, changes to the good ol’ days started with product proliferation, increasingly shorter product life cycles, globalization and a more educated, demanding customer.

Aligning the supply plans to these new volatile demand profiles was no easy achievement. However, none of this physically destroyed your supply chain. The increase in extreme weather events is becoming commonplace for the supply chain community and the challenge of managing around these supply chain disruptions is the new norm.

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Supply chain impact before, during, and after Hurricane Irma

BillDuBois

What are your supply chain thoughts when you see this picture?

As pictures start to emerge showing the damage caused by the recent string of hurricanes like Harvey and Irma, immediate thoughts go to the safety of the people caught in the path of these storms. Thoughts and hopefully many donations are going to all those involved in disaster recovery efforts.

The image below is an aerial photo taken and released by the Dutch Department of Defense showing the damage of hurricane Irma wrought on a shipping yard in the Dutch Caribbean island of St. Maarten.

Hurrican Irma - Supply chain impact

If you happen to be involved in any way in supply chain, whether it’s supply chain planning, manufacturing or distribution, your next thought after hoping people are okay is likely, “holy crap!”. Once the initial shock has worn off, your supply chain instincts will kick in as you assess the damage from a supply chain perspective.

You’re probably asking the question, “What’s the impact on supply?”. As you look at this picture, it’s natural to think about the amount and value of supply that is damaged or stuck on route. That immediately leads to worrying about the impact on the customer:

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Supply chain risks: The knowable unknowns that can hurt your supply chain performance!

Dr. MadhavDurbha

Supply chain riskCSX, one of the only two railroad operators in the USA that handles nearly all the shipments that move by train east of the Mississippi River has been experiencing serious challenges since the month of May. The reasons behind this were well chronicled in a recent Wall Street Journal article. To sum it up, an activist investor caused a major shakeup in the company earlier this year and a new CEO took over in March. The new CEO embarked on several cost reduction initiatives in conjunction with a number of changes (some may argue too fast and too soon) on how the company operates its freight-trains. This has resulted in significant delays and disruptions in shipment deliveries. An extreme example of this is a ride from Chicago to Colesburg, Tennessee taking 18 days, 13 hours, and 57 minutes!

The effects of these delays are being felt by many companies including McDonalds, Kellogg, Kraft-Heinz, and PepsiCo, as the article cites. These companies had to haul expedited shipments by truck so they could keep their production lines running and, in turn, meet the commitments to their customers. This has led to increased costs, not to mention all the inventory stuck in-transit.

Needless to say, such major challenges are visible enough and have significant enough disruptive power that considerable energy gets spent on addressing them, including executive engagement. However, did you know there are enough lead time problems lurking in your current supply chain operations that go completely unnoticed? These are the “knowable unknowns” that can hurt your supply chain performance.

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