• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • 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
    • Supply Chains in Crisis
    • 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
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Reduce Risk in Your Supply Chain

Reduce Risk in Your Supply Chain

October 19, 2010
SupplyChainBrain

It's prudent to focus on supply-chain cost - after all, companies today are facing many tough economic and financial challenges. In recent years, a large number of suppliers and buyers have either been forced to consolidate or go out of business. But there are other factors to consider in the proper management of global supply chains, says Brockwell. A solitary emphasis on labor cost can put companies "into even more risky situations."

Businesses that have gone offshore for manufacturing must ask themselves whether they have "really made a sustainable model going forward." They need to adopt a risk-management strategy that accounts for such factors as currency shifts, changing customer demand, new entrants, wage rates, commodity prices and fuel costs.

Globalizing a supply chain tends to increase risk because it boosts the number of players that is required to get product to the ultimate consumer. The greater number of hand-offs also means a higher degree of variability. So companies find themselves increasing buffer inventories close to their markets, an action that can have a severe impact on working capital.

To mitigate higher risk, some companies are beginning to engage in scenario planning. They examine the possible outcomes of shifts in their markets, with an eye toward the flexibility of supplier arrangements. They'll identify potential cross-border "choke points." And they'll take into account the cost of complying with a rash of new regulations on importing and exporting, such as the "10+2" filing rule of U.S. Customs and Border Protection. In certain cases, says Brockwell, all of that might mean a return of some production to the western hemisphere.

By examining the entire supply chain in detail, companies can drive efficiencies in their overall business model. Indeed, says Brockwell, they might have little choice in the matter. Otherwise, "your competitors who look at their value chains will win in the end."

To view this video interview in its entirety, click here.

RELATED CONTENT

RELATED VIDEOS

Logistics Global Logistics Transportation & Distribution Global Trade Management Inventory Planning/ Optimization Supply Chain Planning & Optimization Supply Chain Visibility Business Strategy Alignment Global Supply Chain Management Quality & Metrics Regulation & Compliance Supply Chain Security & Risk Mgmt
KEYWORDS Business Strategy Alignment Global Logistics Global Supply Chain Management Global Trade Management Inventory Planning/ Optimization Logistics Quality & Metrics Regulation & Compliance SC Planning & Optimization SC Security & Risk Mgmt Supply Chain Analysis & Consulting Supply Chain Visibility Transportation & Distribution
SupplyChainBrain

Pressure Grows on Shipping Industry to Accept Carbon Levy

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • TWO HANDS IN SHIRT CUFFS SHAKE AGAINST A BACKGROUND OF A US FLAG

    Podcast | Leaving China: Is ‘Friend-Shoring’ the Answer?

    Sourcing/Procurement/SRM
  • A SEATED PERSON HOLDS A SMARTPHONE, SHOPPING

    Retail Consumer Data: The Key to Personalization, or Privacy Violation?

    Regulation & Compliance
  • THE SPACE AROUND A COMPUTER KEYBOARD IS CLUSTERED WITH IMAGES GENERIC SHIPPING BOXES

    How Suppliers Can Overcome E-Commerce Supply Chain Challenges

    Data Management (Big Data/IoT/Blockchain)
  • TWO MEN IN SUITS ENGAGE IN CONVERSATION ACROSS A COFFEE TABLE HOLDING AN OPEN LAPTOPIN AN OFFICE

    For Shippers, Disruption Means Opportunity to Rethink Carrier Strategy

    LTL/Truckload Services
  • karen-jones.jpg

    Watch: Four Industry Disrupters Impacting Logistics

    Data Management (Big Data/IoT/Blockchain)

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming 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 ©2023 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