The recent occurrence of faulty ignition switches in General Motors cars should serve as a wakeup call to companies that lack good visibility into their global supply chains. But most have failed to implement adequate supply-chain risk-management programs that could head off such problems.
Analyst Insight: In July 2013, Mary Driscoll of APQC had an interesting headline in the Harvard Business Review Blog — "Why are Companies Continually Getting Blind-sided by Risk?" Their risk management survey highlighted that 75 percent of respondents stated they were hit by at least one major supply chain disruption over the past two years. Another key finding: people at the front lines of business were hamstrung by lack of resources for visibility needed to adequately assess their supply chain risk. – Gregory L. Schlegel, Founder, The Supply Chain Risk Management Consortium, and Adjunct Professor, Supply Chain Risk Management, Lehigh 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
Analyst Insight: The supply chain has traditionally been managed from a holistic, top-down perspective. As such, events have historically been treated as occurring outside of the supply chain cycle. - Jorge Garcia, Senior Analyst, Technology Evaluation Centers
As companies develop business relationships around the world into more complex supply chains, protecting these essential links from disruption is becoming harder to manage.
Analyst Insight: When it comes to supply chain management, "Big Data" has generated more in the way of buzz than it has real benefit. Awash in a rising sea of data, companies still struggle to use it to make better decisions. - Brad Householder, Principal, PwC's Advisory practice; Anand Rao, Principal, PwC's Financial Services Advisory practice; Syed Mukhtar, Director, PwC's Operations practice
Each year ChainLink Research conducts research to provide insights into the business challenges companies are confronting and what strategies and solutions they plan to use to address those challenges. This year is no different: your views are needed.
Just as KFC's China sales began to improve, the spread of bird flu is once again threatening the chicken restaurant's recovery, this time ahead of the Chinese New Year holiday, typically a busy period for the chain. The New Year begins on Friday, Jan. 31.
With worries about data breaches and privacy violations mounting by the day, corporations are becoming more aggressive about preventing physical and financial losses, experts say. In some cases, they add, that can involve counterattacks against hackers.
Only 41 percent of companies surveyed are considered to have "mature" supply chain risk management processes, but nearly four in five mitigate against disruptions by implementing a dual sourcing strategy, according to a recent report.
