August 22, 2014

Parts Level Risk Management & Mitigation: What’s Next in Global Supply Chain Management

Jon Bovit

A new generation of risk management and mitigation techniques and technologies is needed to address a range of industry-wide challenges facing major global industries including high-tech and electronics, automotive and the life sciences.

In high-tech and electronics, for example, local regulatory pressures, supply chain risk and the rapidly increasing costs of outsourcing in traditionally low-cost geographies are compelling electronics OEMs to restructure their global supply chains in order to respond more quickly and flexibly to new threats and challenges.

In the automotive industry, manufacturers and their suppliers increasingly are challenged to build more flexibility into their global supply chains to get closer to the strategic markets they serve, better respond to local demand and more effectively optimize their global manufacturing capacity to meet the needs of the most rapidly growing markets.

Additionally, in life sciences, pharmaceutical companies’ supply chain organizations must ensure reliable supply that is regulatory compliant while they control costs and maximize revenues to fund R&D to capitalize on growth opportunities.

SCRM and mitigation are only truly effective at a product and part number level. The next generation of risk management and mitigation solutions will enable supply chain risk managers to quickly gain parts level risk management insights so they can make proactive risk mitigation strategies more effective. They provide these and other industries with the multi-tier, site-level supply chain visibility and analytics they need to address these challenges and more rapidly adapt to the dynamics of today’s complex global marketplace.

At the core of these next-generation resiliency solutions, a central repository will automate collecting, managing and refreshing global multi-tier supplier visibility information. This information will provide critical supply chain insights based on business intelligence about supplier global footprint and site locations, sub-contractor and sub-tier supplier dependencies, site activities, part origin, alternate sites, recovery times, emergency contacts, and business continuity planning (BCP) information.

The next-generation techniques and technologies, moreover, deliver a complete and scalable solution for the entire spectrum of risk management challenges. Their comprehensive capabilities include multi-tier mapping, event monitoring, and risk quantification and mitigation tools, together with a broad range of survey modules for business continuity mapping, conflict minerals, corporate social responsibility and supply chain security – all on a single integrated platform.

To summarize: supply chain executives are increasingly challenged to manage and proactively mitigate risk to the business resulting from complex global multi-tier supply chains. However, this task can be extremely time- and resource- intensive for companies looking to solve the problem in a one-off fashion for their own enterprise and might require an investment of millions of dollars in tools and multiple expensive resources employed full time. 

The next-generation of risk management and mitigation tools addresses these business-critical issues by redefining best in class in supply chain risk management. The resulting cost savings and greater return on investment are critical to a supply-chain-dependent enterprise’s success in today’s competitive global economy.

 Our “Resilinc SupplyIntel & EventWatch Solution Brief” provides a more detailed discussion of what to look for in selecting next-generation supply chain risk management and mitigation techniques and technologies.

Topics: supply chain risk management