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That’s when it all gets extremely complicated, but one thing remains crystal clear: supplychainriskmanagement is profoundly important for businesses to grow and expand. Without a doubt, managingsupplychain is nothing but easy. Its scope is extensive and spans all areas of the supplychain.
For years, supplychains were engineered to be lean. Reducing cost was the primary objective, and most operational decisionsfrom sourcing to fulfillmentreflected that mindset. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed.
Discover how Ivalua’s SupplyChain Collaboration solution empowers you to work more closely with suppliers, reduce risk, and build a more agile, connected supplychain. Procurement vs. SupplyChainManagement: What’s the Difference?
Supplychainriskmanagers have a dilemma. Journalist Thor Benson reports that tuning out bad news might be good for their mental health; however, riskmanagers know tuning out bad news wouldn’t be good for business. Missed opportunities are another equal source of extraordinary risk.
Sure, supplychain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring SupplyChain Performance Beyond Cost Reduction. Read more. . Read More. . Read More. .
Over the past two years, I’ve written extensively about the growing importance of supplychainriskmanagement and supplychain mapping. See for example: Rethinking SupplyChainRiskManagement. Doing Nothing on SupplyChainRiskManagement.
Reason #4 Making key decisions by modelling the supplychain in Excel. Reason #5 Not having a supplychainriskmanagement process. Reason #6 Not effectively managing inventory. Reason #7 Making decisions based on bad data (supplychain data accuracy).
SupplyChain Disruptions: A Survival Guide. Do you feel supplychainriskmanagement is too complicated to implement? This article will show you how one of the worlds leading companies put a theory into practice and survive many supplychain disruptions. Is Apple SupplyChain Really the No.
Our preliminary findings suggest that supplychain resilience has been increasing in importance over time, but still remains secondary to the end goal embedded in the perfect order metric – the right product, to the right place, at the right time. However, supplychain resilience is more than just a concept to practitioners.
Amid todays unpredictable environment, supplychainriskmanagement has taken center stage for most product companies striving to maintain resilience and efficiency. Geopolitical tensions, tariffs, inflation, and labor shortages have heightened risk exposure, significantly impacting business performance.
According to a July 2014 supplychain research study from Accenture focused on Big Data and supplychainriskmanagement, most organizations have high hopes for using big data analytics in their supplychain but many have had challenges in deploying it.
Not surprisingly a company this big, delivering different solutions to a variety of industries, has a complex supplychain. They source from approximately 15,000 suppliers with a sourcing spend of over €7 billion. But the company understands this is not enough; they need more visibility to the end-to-end value chain.
Many-to-many can also refer to many participants in a network accessing many, many sources of event data critical to supplychain operations through a public cloud network. But even in more normal times, a supply plan usually can’t be fully executed. COVID of course taught companies the need for agility.
Two recently published studies identify the top disruptions that impacted industry, business and global supplychains during 2024 and our expected to be present in 2025. This data was compiled from Resilincs EventWatchAI , a risk monitoring database provided to customers.
A critical part of any supplychain is an effective and efficient supplychainriskmanagement (SCRM) program. Stone , Vice President of SupplyChainRiskManagement at Exiger Government Solutions.
28% of global retailers have tried to find alternative sourcing options due to supplychain issues (RetailNext, 2020). 58% of consumers would stop buying from a brand entirely after one to three supplychain delays or disruptions. Source: Consultancy.UK. Image source: Fortune. SupplyChain Dive).
Our team put together some ideas around supplychainriskmanagement. We addressed supplychainrisk in two ways; the leading indicators that show when you are at risk, and a simulation to see how well your supplychain can respond to a major event.
Subscribe to SupplyChain Game Changer. SupplyChainRiskManagement is a Cirque Du Soleil Calibre Act! In today’s world, supplychains are more important than ever. In fact, 89% of businesses encountered a supplier risk event in the last five years. Subscribe Here! Email Address.
There are two things Boeing and Airbus have in common, utilization of lean manufacturing system and strategic sourcing concept. However, the overall implementation of strategic sourcing is a bit different between the two companies. Steve Jobs invited the Tim Cook to help to improve Apple''s SupplyChain in 1998.
While this provides essential information, Exiger’s tools go beyond static maps by enabling dynamic, real-time tracking of supplier activities across all levels, giving businesses an in-depth look at sub-suppliers, raw material sources , and every node within the supplychain.
With 30% of respondents indicating their organizations are suffering from an inability to assess risk across suppliers, many are investing in new strategies to minimize the frequency and impact of disruption. The study also found that suppliers will be vital for successfully ensuring supply continuity.
The rising complexity of items sold decreases the organization’s ability to forecast, and the longer lead times across multiple tiers of sourcing and supply, increases the bullwhip impact (distortion of the demand signal across multiple tiers of the value network). This increases risk. What is RiskManagement?
However, many ports are not allowing these ships to dock due to the risk of creditors seizing the ships. According to sources, Stevedores are demanding advance payment in cash. Linear supplychains as we know them are turning into supply networks with more players and parties than ever before.
Where you get these from, or how you source them, can be a huge decision. Sourcing can seem overwhelming if you’re a brand or retail buyer not entirely sure what you’re doing, but it can significantly impact the quality, cost, and availability of your products. What is strategic sourcing? What is procurement?
Amid todays unpredictable environment, supplychainriskmanagement has taken center stage for most product companies striving to maintain resilience and efficiency. Geopolitical tensions, tariffs, inflation, and labor shortages have heightened risk exposure, significantly impacting business performance.
Cahn also highlighted on-time delivery risk: “Will a supplier be around to support my delivery schedules and can I trust them not to shut down my plant [due to a late or missed delivery],” he added. “Do Do we have the right Service Level Agreement metrics in place? Is the mode of transport the most efficient to impact on-time delivery?
By end of day Monday, you have identified the key items that are manufactured in that region, identified the customers and revenue impacted by the loss of those items, identified alternative sources, and were able to shift to new suppliers and reschedule orders. Can you imagine your supplychain planning team being able to pull this off?
There are four steps businesses can apply to understand and improve the resiliency of their supplychain network: Assess: Use all modeling and analytics to identify areas of risk. You can use network design models, company KPIs and other metrics to get a holistic look at your supplychain.
So it comes as no surprise a joint report published by the Cranfield School of Management and Dun & Bradstreet concludes, “There are significant differences across sectors, requiring varying riskmanagement practices across industries.”[1] This year’s top ten risks were identified as: 1.
You may be part of an organization whose leaders understand that supplychainriskmanagement (SCRM) is a strategic imperative, and your SCRM may already be mature and delivering a return on investment. 4) The supplychain organization’s operational review includes evaluation by the corporate risk team.
As reported in USA Today : [In a sourcing practice nicknamed “China plus one”], big brands like Rip Curl send their specifications — what they want made and how much they’re willing to pay for it — to sourcing agents, who find factories that agree to fulfill them. no metrics, operate in functional silos).
Issues with Many SCRM Programs Supplychainmanagement and supplychainriskmanagement (SCRM) have become a greater priority for businesses and government organizations in the last five years, according to Gartner. We refer to this as the TRADES framework.
While some of the increase was due to growth in our customer base and the number of suppliers monitored (more factories = more potential for factory fires) the trend line was rising at a much faster clip than business metrics would account for. Supplier risk assessment. Risk monitoring.
Predictable risks are still causing significant losses on a daily basis. Many organizations are losing millions, and in some Global 3000 cases, billions of dollars a year due to ineffective supplychainriskmanagement and monitoring. Sustainability performance metrics also enable creation of risk maps.
Like most readers of Resilinc’s blog, you probably agree that improving supplychain resiliency should be a core strategic goal for your company—and for any large manufacturing company. Or you may be in the early stages of seeking buy-in from C-level leaders for a supplychain resiliency effort.
Several articles and reference books have highlighted Joe’s procurement transformation accomplishments at Lucent Technologies, Juniper Networks, and in the area of SupplyChainRiskManagement. factors need to be integrated into sourcing strategy decisions and therefore into supplier selection criteria.
Resilinc’s Rick Freeman weighs in on the future opportunities for high-tech and semiconductor companies Despite the stabilization of the high-tech and semiconductor supplychain, the industry still faces pressure due to ongoing import/export restrictions and changing regulations governing semiconductor production and sourcing.
On the other hand, transportation metrics continue their slowed pace, reaching the second highest level of capacity growth, and the third fastest rate of price contraction in the history of the index. Interestingly, Transportation Utilization is the outlier here, as both utilization metrics in the index were up significantly in September. ”.
The integration layer also manages connectivity to your external partners and remote data sources. The visibility layer includes the aggregation and normalization of your global operational data from both internal and external sources for the purposes of business intelligence, metrics and reporting. Visibility Layer.
Executive Summary ESG Due Diligence: A Guide to a Sustainable SupplyChain The ESG due diligence process assesses a companys environmental, social, and governance practices to manage ESG risk and promote sustainability. Regardless of company type or size, determine what metrics and goals are relevant to your business.
Interestingly, the downshifts we observed in transportation metrics were much more muted in the last week of July, leaving open a possibility for a bit of recovery as we move towards peak season. Warehousing and Inventory metrics continue to buoy the logistics sector. that we have not seen since April of 2019.
SIM encompasses dynamic processes that enable organizations to track suppliers, evaluate their performance and review and perform activities such as supplychainriskmanagement. Keep reading to find out how your organization can benefit from Supplier Information Management.
Applying Lessons, Actions and Learning Once again we reiterate that global supplychainmanagement teams instill the learning, lessons and successful actions garnered from the pandemic years, namely: Broader material and finished goods supplier sourcing options across multiple regions.
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