• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » The Missing Future Risk Management Elements

The Missing Future Risk Management Elements

March 20, 2014
SupplyChainBrain

If your supply chain is like the top 1 percent of companies, you can finally check the supply chain risk management box, because you have reduced your exposure to supply chain risk.  You have a mechanism to look at tier-n supplier financials, inventory, logistics, natural catastrophic events, open orders, etc.  You know that you are now prepared and ready for almost any event.  Congratulations!

Of course the true test will be the first disaster that pushes against the plan and processes.  Remember supply chains evolve, ebbing and flowing based on the business needs and requirements.  The same is true for supply chain risk management.

Evolution

Supply chains are a complex machine woven of upstream and downstream businesses focused on transactions that fulfill plan, source, make and deliver.  Somewhere in this mix supply chain risk management practices have evolved for each company within the supply chain.  And, yes, a few companies work together managing their various suppliers in the network to improve their risk management processes.  In a nutshell the supply chain is made up of companies each focused on its own supply chain risk management process, with some focus on a few supplier tier levels.  The supply chain risk management processes encompass multiple sources of supply, inventory, finances, contracts, etc.

Value chains are the new supply chain; smarter, more encompassing and focused on mutually beneficial outcomes.  Applying the same supply chain risk management techniques will give you the same results and may not be mutually beneficial to reap full potential value.  With the evolution from supply chain to value chain is a revolution filled with new risk management techniques.

Valued Techniques

When is the last time you compared your value chain supplier’s financial performance to all parties in the supply chain?  A comparison across the value chain of each company’s operating margin, inventory turns, cash-to-cash cycle times and return on invested capital can be an eye opener.  It can show you the dynamic business aspects of each of the partners’ business, provide you with a gauge of balance vs. resiliency and also uncover vulnerabilities that may need to be addressed.

For instance, the value chain may need more inventory in one area, move to a substitute product or supplier, or select another SKU to minimize the value chain impact of the vulnerability. The point is, using the business financial ratios to compare and contrast overall performance can be a predictive indicator of vulnerabilities.  But it requires stepping it up from a silo or one-off perspective to a value chain and network approach.

                                                    The Outlook

With evolution comes revolution and that time is now to move from supply chain risk management to value chain risk management.  If done right, this shift will result in greater resiliency for the entire value and supply chain.  And individual business will learn how to quickly address the issues by focusing on the entire value chain success vs. only one aspect.

RELATED CONTENT

RELATED VIDEOS

Business Strategy Alignment Global Supply Chain Management Quality & Metrics SC Security & Risk Mgmt Food & Beverage
KEYWORDS BravoSolution Business Disruption Business Strategy Alignment Food and Beverage Global Supply Chain Management Mickey North Rizza Quality & Metrics SC Security & Risk Mgmt Supply Chain Analysis & Consulting Supply Chain Management: Supply Chain security and Risk Management Supply Chain Optimization Supply Chain Risk Management Value chain
  • Related Articles

    Supply Chain Security & Risk Management: There's Help for the 'Dirty' Work of Dealing with Risk Management

    Risk Management Comes to the Forefront of Supply Chain Management Strategy, According to New IBM Study

    This Is the Year for Predictive Risk Quantification to Emerge in Supply Chain Management

  • Related Events

    Post-Pandemic Impacts on Food & Beverage Businesses and How to Ensure Resiliency

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: J&J Pause Could Last Several Weeks; Global Vaccine Production Nears 2 Billion

    Coronavirus
  • Shipping Costs

    Higher Shipping Costs Are Here to Stay, Sparking Price Increases

    Coronavirus
  • Ocado

    Kroger Is Amassing a Robot Army to Battle Amazon, Walmart

    Logistics
  • Shipping Logjam

    Reducing Supply-Chain Disruptions Through Integrated Logistics

    Coronavirus
  • Indoor Farm

    Vertical Farming: A Solution to Waste and Inefficiency in the Food Supply Chain?

    Sustainability & Corporate Social Responsibility

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

Yang Ming 6 River Systems ArcBest
Armada aThingz BluJay
Burris Logistics DSC Logistics DCSA (Digital Container Shipping Association)
DHL Resilience360 Flash Global Genpact
Geodis GEP GreyOrange
Honeywell Corporate Honeywell Intelligrated Infor
Inmar Kibo Commerce Kinaxis
Logility Magnitude Software MPO
Old Dominion Oliver Wight OpenSky
Paccurate Ports America Purolator
QAD Precision Red Classic Riskmethods
S&H Systems Snapfulfil TGW Systems
Tradepoint Atlantic Transportation Insights Watson Land Company
Westfalia Technologies Workjam
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing