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Supply Chain Security & Risk Mgmt.

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Do You Know How Vulnerable Your Supply Chain Is?

The elements of supply chain confidence are visibility and control, the lack of which will increase supply chain risk. Without them, you are at great risk.

"Visibility" refers to the ability of all members of a chain to see from one end of the pipeline to another; an undistorted view not clouded by intermediate inventories or other barriers to vision. Lack of visibility forces supply chain members to rely on forecasts and to build buffers, worsening the situation. Unfortunately today most supply chain members do not have detailed knowledge of what is happening in the rest of the chain. For example, they usually lack information on finished goods inventory, material inventory, work-in-process, demand levels, production plans, capacity, yields and order status.

Supply chain control refers to the ability to respond to disturbances in appropriate ways. Problems arise when disturbances are not recognized in time and when there is a time lag for the remedial action to take effect. This can result in the remedial action actually worsening the situation.

How vulnerable is your supply chain?

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Keywords: supply chain risk management, supply chain management, assessing vulnerabilities in supply chain, supply chain systems

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