Supply Chain Globalization: Great Opportunities and New Risks
By Yves Belanger and Yves Leclerc | Retail info systems news
Risks of Dependency, IP Theft and Reputational Harm
Managing Supply Chain Risk
Although new technologies continually emerge that “revolutionize” the supply chain, not all technologies are alike. Businesses should focus on implementing and training their teams on demand planning tools that actually predict and manage volatility, not tools that give you point in time data or best estimate approximations.
How will you face so many uncertainties and potential challenges? You certainly can’t control all external forces (political, natural disaster, energy costs, counterfeiting and others) but you can start by making supply chain risk management (SCRM) an integral part of your organization’s strategic planning process and redefining your internal practices and processes. As you plan for the future and build on strengths, make sure you understand the risks and threats that could cause you to lose competitive advantage. All of your executives need to be involved in this process. In addition, you will need an emergency plan for new external or internal threats.
A proper SCRM plan is not about building fear in the organization, but about bringing peace of mind that your organization has taken the time to understand what is important and how to protect what is important should a crisis happens. This will ultimately make your organization stronger and ready to take advantage of situations that cause others to flounder.
Yves Belanger and Yves Leclerc are both members of West Monroe Partners. Belanger is a director and industrial engineer specializing in workforce optimization, Leclerc is a managing director and leads supply chain practice and Canadian offices.