On June 24th 2016, citizens of the United Kingdom voted and passed a referendum to leave the European Union. Better known as “Brexit”, the move sent a shock wave through global financial and currency markets. In context of the interconnected globalized economy, Brexit is not a localized phenomenon. Given the significance of the UK to the world economy, the vote has global economic repercussions and its’ impact is not limited to the UK and its citizens.
In early 2016, Facebook-owned Oculus brimmed with confidence following scores of pre-orders on January 6th for its highly-anticipated $600 Oculus Rift virtual reality headset. Oculus founder Palmer Lucky told attendees at CES 2016 that “Preorders are going much better than I could have ever possibly expected. I can’t talk about numbers, but we sold through in 10 minutes what I thought we were going to sell through in a few hours.”
While preorders went better than they expected, what was a competitive NPI window for the VR pioneers quickly snowballed into a botched launch within a few months due to “unexpected component shortages,” leaving the Rift’s avid early-adopters furious, their deliveries pushed back months after the initially promised delivery dates of late-March. In a key window that can potentially leave scars on a new company's brand, the recent delays shed light on how aligning a company’s Supply Chain and Procurement with Design early on is crucial when rolling out a successful new product introduction.
Tesla’s crossover Model X sports utility vehicle – characterized by its unique “falcon-wing” doors – was hit with significant delivery delays due to severe component shortages and issues with direct suppliers’ capabilities and cooperation, compromising the company’s initial forecast and resulting in a temporary stock price drop.
Supply chain practitioners, accustomed to the ongoing disruptions throughout the sub-tier supply chain, are familiar with the usual risks that threaten supply chain continuity: factory fires, port disruptions, force majeure, chemical spills, and so on. But as global supply chains grow more interconnected, seemingly unrelated events can have a ripple effect, branching out and impacting your supply chain.
In this post, we examine three of these less apparent supply chain risk types, explain the nature of their risk in the supply chain context, and present guidelines to help you better respond to and mitigate such risks.
With any growing business discipline, there will always be the need for publications that are both insightful and engaging. As global supply chains become more interconnected and entangled, there is a growing demand in the supply chain management community for books, case studies, critical success stories, best practices, and publications that provide concise and intriguing intelligence into supply chain risk management and resiliency. Fortunately, there are numerous authors providing companies with fresh and timeless insights to better manage the everyday and unexpected risks and disruptions along the global supply chain.
So many books, so little time.
That said, we’ve whittled down six worthwhile reads we believe best represent the growing discipline of supply chain risk management and resiliency. By no means is this an exhaustive list – just a few poignant works we think should live on your bookshelf. In addition, keep reading to find out how to claim your free hardcover copy of The Power of Resilience: How the Best Companies Manage the Unexpected by Dr. Yossi Sheffi!
“It is what you read when you don't have to that determines what you will be when you can't help it.”
– Oscar Wilde
In part 1 of this blog, we examined lithium-ion batteries in the supply chain context and examined the recent ban's stipulations. In Part 2, we discuss why many shippers and advocacy groups disagree with the prohibition, what this ban can mean to supply chain and procurement professionals, and provide next steps for those potentially affected.
This is part 1 of a 2-part blog addressing the International Civil Aviation Organization's (ICAO) recently enacted ban on the shipment of lithium-ion batteries as cargo consignments on passenger planes and the associated supply chain risks of such provisions. In part 1, we look at the lithium-ion battery supply chain in context and examine the ban stipulations. In Part 2, we discuss why many shippers and advocacy groups disagree with the prohibition, and what this ban can mean for supply chain and procurement professionals.
The ICAO – a United Nations agency regulating the transport of dangerous goods on aircraft – has enacted a controversial ban on the shipment of lithium-ion batteries as cargo on passenger aircraft. Due to long-standing concerns from pilots and plane makers that lithium-ion battery (LIB) consignments present a critical fire risk aboard aircraft, the ICAO’s 36-state governing council declared the prohibition along with other LIB battery shipping regulations, effective April 1st, 2016. Shippers and advocacy groups argue the prohibition unnecessarily impacts the battery supply chain without addressing the true safety risks associated with transporting LIBs.
For most enterprise business applications, the addition of mobile interfaces has facilitated data access and accelerated workflow. For some business applications, mobility is transforming the business process and creating new capability rather than simply extending the application UI to handheld devices. This is the case with cloud applications for supply chain risk management (SCRM) and resiliency.
On February 24th, President Obama signed into law the Trade Facilitation and Trade Enforcement Act of 2015 which now officially prohibits the importation of goods produced by forced labor or child labor, closing an 86 year old loophole and reauthorizing the Customs and Border Protection Agency to seize any imports suspected of being produced by forced labor. The International Labor Organization estimates forced labor fuels $51 billion a year in profits in international trade and more than 14 million people worldwide work as a result of force, fraud or deception in homes, factories, mines, and farms.
Companies need to be realistic when it comes to the disaster preparedness of their supply chains. Natural disasters, factory explosions, labor disputes, power outages, chemical spills, geopolitical crises - these supply chain disruptions and continuity risks are not matters of if, but when and where. Once a disaster strikes, do you know what is going on at the part-level of your suppliers? Have you identified which activities and roles you need to concentrate on so your business can weather the storm?