Head off supply chain disruptionJoe Wilson
Potential supply chain disruption is a tangible risk. This is not a matter of if, but when, how bad and what are your options? Your supply chain risk management system must function as an early warning system and to manage those risks as they arise.
Risks include: Regulatory compliance; Information privacy and security; Contract obligations; Employee and third-party fraud; Corporate culture; Change management
Managing an agile and comprehensive supply chain risk management system is tough. You must constantly ask, “How can we improve our system, and what do I need to do so?”
Realize first you will not think of everything. Look out for new threats in real time. You must leverage your abilities to control, mitigate and measure response impact quickly, easily and accurately.
Lions and tigers and bears! Use any foreign sources? Be very careful when sourcing from troubled nations. There are all sorts of nasty surprises that can bite you if you are not careful. These cannot only get you sideways with sanction regimes (including criminal penalties), they can also be embarrassing.
This is difficult!
But what about their suppliers? Have you vetted them too? The supply chain starts with the source and goes right through you. Any contamination and you are in trouble!
How do you calculate an ROI for something that might not happen?
You cannot have no one responsible for your suppliers’ suppliers.
It is a frustrating struggle for many who don’t address it until they get clobbered.
Building your solution
How do you secure and deploy a valuable solution? First believe this is not a matter of if, but when, how bad and what are some options?
- Identify and assess your risks (Financial, Reputational, Likelihood, Impact)
- Secure C-level commitment
- Set a small team
- Get outside advice and counsel
- Identify and keep up with relevant regulations
- Map out an implementation plan (Revisit and revise regularly)
- Build risk management into the supply chain processes
- Assign risk management goals to the supply chain team
- Develop responses
A robust supply chain risk management program acts as an early warning system to identify and prepare for the risks you are likely to face; it also opens access to new suppliers and markets – an absolute requirement if you are serious about minimizing disruption, thriving, and securing long term viability.
Get moving on this now. Don’t get punched or burned. You don’t want to explain to your C-levels why they may be criminally liable for the firm doing business with a bad actor!