Analyst Insight: As the concept of supply chain risk management matures into a discipline, we witnessed that most disciplines need frameworks to ensure initial success and sustainability. This is holding true for the growth and maturity of SCRM. The Association for Operations Management, or APICS, has embraced SCRM by working with the Risk Consortium to create a first-of-a-kind certificate in SCRM, providing a solid baseline for what a framework is and how it supports a successful supply chain journey. – Gregory L. Schlegel, Founder, The Supply Chain Risk Management Consortium, Adjunct Professor, Supply Chain Risk Management, Lehigh University, and Adjunct Professor, Enterprise Risk Management, Villanova University
Analyst Insight: Supply chain risk management is an evolution of business processes, techniques and focus over a multitude of elements. As supply chains have evolved to value chains, so too have the methods for supply chain risk management. Value chain risk management requires a broader integrated strategy, focused on reducing the risk at each point in the value chain, while balancing risk and resiliency. – Mickey North Rizza, BravoSolution
FreightWatch International, a logistics security solutions provider, recorded 951 cargo thefts throughout the United States in 2013, the same amount as recorded in 2012, tying for the highest level of theft incidents on record.
Business interruption and supply chain risks remain atop a list of the major hazards drawing companies' attention this year, according to the recently released Allianz Risk Barometer, a survey of some 400 of the firm's corporate insurance experts from more than 30 countries. Insurers are starting to pay much more attention to supply chain when underwriting industrial risks, the global insurer says.
Peas and carrots, strawberries and cream, risk management and supply chain management. OK, that last pair doesn't have the same ring to it, but I'm sure supply chain professionals are more than aware of the intrinsic relationship between the two.
Data-based predictive analysis that helps companies anticipate global catastrophes and model potential supply chain disruptions is playing an increasing role in risk management, says Perry Rotella, supply chain group executive at Verisk Analytics.
Many companies are looking beyond China to less developed nations for sourcing, says Mark Michaels, chief commercial officer at Damco. Michaels discusses supply chain risks around the expansion into less developed areas and the pressure on providers to deliver service comparable to that in mature markets.
MIT's High-Viz Supply Chain Project is developing a way for companies to automatically map and analyze supply chain risk. Bruce Arntzen, executive director of the Supply Chain Management Program at MIT, explains the methodology underlying this project, progress to date and barriers that still exist.