Analyst Insight: Our research finds that very few companies have a good handle on supply chain risk. The dynamic nature of trading partner relationships, the depth and global footprint of multi-tier supply networks, and many other factors make building a resilient supply chain very difficult. However, those that manage supply chain risk well can gain market share when the inevitable disruptions occur, impacting their competitors. - Bill McBeath, chief research officer, ChainLink Research
Analyst Insight: There were more than 2,000 supply chain disruptions for publicly held companies in 2011. That, coupled with PRTM's 2010 global survey stating that over 90 percent of all companies plan to grow market share by manufacturing and selling in overseas markets, it goes without saying that our global supply chains will experience additional uncertainty, complexity and risk in 2012. And yet, the vast majority of manufacturers are fully unprepared for the complexity of manufacturing and servicing global customers with regionally customized products. - Gregory L. Schlegel, adjunct professor, Supply Chain Risk Management, Graduate Program, Lehigh University
Initiatives such as the Global Supply Chain Forum, which resides at Ohio State University's Fisher College of Business, give the business world access to academic expertise and valuable research, says forum director Douglas M. Lambert. Such efforts are becoming more common, he says, adding that "the business community ought to be our laboratory."
A year after the Japanese earthquake and resulting tsunami, supply chain managers are reconsidering just-in-time strategies, according to a survey released by the Business Continuity Institute.
Although the Food Safety and Modernization Act of 2010 was passed nearly a year ago, and food and beverage companies have had a significant period of time to calculate and understand its impact, and implement traceability solutions, there are still many issues and processes to be resolved or implemented before food and beverage enterprises can be considered 100-percent compliant.
The Open Group has issued a "preview" of its new standard for promoting best practices in the area of supply-chain security. The Open Trusted Technology Provider Standard (O-TTPS) Snapshot, developed by The Open Group Trusted Technology Forum (OTTF), was designed for use by global providers and users of commercial off-the-shelf (COTS) products for information and communication technology (ICT).
Analyst Insight: It is common for high-tech companies to have established processes to ensure they are not overly dependent on too few suppliers. Far less common are processes or intelligence to ensure they are not overly dependent on a specific geographic region. But recent events have pushed the issue of risks from geographic concentration of the supply base to the forefront. - Bill McBeath, Chief Research Officer, ChainLink Research
Analyst Insight: The generally low-margin and high-waste food & beverage sectors will continue to increase their technology investments in 2012. Traceability, quality and fulfillment technologies are emerging with strong ROI, though compliance and traceability get much of the attention. No doubt global regulations on food safety may be somewhat of a catalyst, but companies say that the benefits are what really drive their investments. - Ann Grackin, CEO, ChainLink Research
Analyst Insight: Food and beverage manufacturers have the distinct advantage (or detriment, depending on how you view it) of often having direct access to the customer. In today's more open, collaborative, social world this can reap major benefits of understanding one's customer base and responding to its needs. On the flip side, food and beverage manufacturers are susceptible to a major downfall simply from minor issues across its supply chain. Open or not, it's the new reality. - Simon Ellis, practice director, Supply Chain Strategies, IDC Manufacturing Insights
ImpactFactor recently completed a study on supply-chain risk, surveying managers of more than 100 companies. The results were not encouraging. According to managing director Bill McBeath, many companies don't consider proactive risk-management to be a strategic tool. He was "shocked" at how level their level of investment in that area was, with half reporting expenditures of $50,000 or less to audit and assess suppliers. "Not a single one spent more than $3m," he says. "Given the huge potential impact [of risk] on their shares, we believe companies are seriously under-investing."