At ISM, Sherry Gordon and I presented a session in the risk track covering "Core Risk and Performance Technologies You Can't Afford to Be Without" which we've been covering in a series of posts and will continue to plan to share insights on. But before even considering technologies in this area, we think it's critical that companies ask themselves a number of questions to know whether or not a focus on supply chain risk management technology will be worth it or not in the end after all the effort that goes into planning and rolling out such programs and systems. If you answer "no" to more than four questions in the list below, we recommend seriously revisiting your supply chain risk management deployment plan and reprioritize budgets/investment in other areas first -- or outsourcing the area to a third-party who can manage and take responsible for such initiatives for you. Without further ado...
- Do you have a supply chain risk management process currently in place?
- Does your company currently collaborate across functions to manage supply chain risk?
- Have you rolled out another supplier management technology/platform in an area outside of supply chain risk management (e.g., supplier on-boarding, supplier diversity, etc.)?
- Does senior management understand the need for managing risk? Can they articulate the top three reasons to invest in such a program?
- Do you have support from others in the business (e.g., plant managers) for such a program?
- How well does your company use technology in the procurement/supply chain area in general (e.g., P2P, e-sourcing, contract management, etc.)?
- Have you already purchased supply risk enrichment data as secondary focus as part of another initiatives (e.g., spend analysis)? Do you know the weaknesses of third-party enrichment data based on your own supply base?
- Is your current off-line approach to managing supply risk more proactive than reactive? If reactive, do you understand all of the processes and capabilities it would take to become more proactive?
- Are you aware of alternative approaches to reducing supply chain risk other than technology? Have you explored these options? For example, supply chain risk insurance programs?
- Are you a member of any member communities/groups (e.g., ISM Supply Chain Risk Management working group, APICS, etc.) that can act as sounding board for your supply chain risk management efforts?
Above all, good luck in your supply chain risk management technology journey. And don't let this test scare you away.