The Supply Chain Management Category

IT Outages, Cyber Attacks and New Regulations: BCI’s Latest Supply Chain Resilience Report

IT and telecommunications outages; cyber attacks; and loss of skilled employees are the top three causes of supply chain disruption, according to the Business Continuity Institute (BCI)’s ninth annual Supply Chain Resilience Report, released this month in partnership with Zurich Insurance Group. Although these three causes of disruption are expected to remain highly relevant in the next 12 months, companies should also keep an eye on new laws or regulations, which are expected to act as a source of disruption in the next five years.

New Research: Using Collaboration in Bringing Competitive Advantage to Your Supply Chain

If your organization wants to create competitive advantages through its supply chains, collaboration is crucial, according to new research from the Global Supply Chain Institute at the University of Tennessee – Knoxville. The findings were presented in a white paper, End-to-End Supply Chain Collaboration Best Practices, written by Mike Burnette, managing director of the institute. Burnette and other supply chain faculty at the university interviewed 17 leading companies in eight industries to determine the best practices that help organizations achieve success through collaboration.

Commodity Price Volatility in the Cannabis Supply Chain: The Biggest Growing Pain?

As I write this on the eve of participating in a conference panel discussion about how corporate communications can better work with trade media firms, I can’t help but think about my relationship with the legal cannabis industry — and particularly its supply chain. Sounds like a stretch, right? Not so much.

Determining the Avoidable and the Unavoidable in Supply Chain Risk

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Some supply chain risks are avoidable. For instance, it is feasible and highly advisable to avoid doing business with potential suppliers in certain countries (like North Korea) where doing so would bring all sorts of risk to fruition. But any supplier could suffer from an accidental factory fire. A hurricane or flooding could strike pretty much anywhere in the world, so this sort of risk is unavoidable. That does not mean, however, that we cannot take actions to manage that type of risk better.

DHL Resilience360: A High-End Supply Risk Solution Hiding in a Logistics Services Provider (Part 2: Determining the Fit) [PRO]

The market for supply chain risk management solutions continues to grow. SAP Ariba is back in the game, after a market hiatus from SAP Supplier InfoNet, with a new solution. Incumbents such as riskmethods and Resilinc continue to build out their offerings, and eager adoption from a growing customer base in manufacturing and other sectors is driving one of the healthiest revenue CAGRs in the procurement sector, according to Spend Matters research.

Within this sector, DHL Resilience360 offers a compelling set of capabilities that span risk assessment, supply chain network visualization, incident monitoring and risk response. (See Part 1 of this analysis for a full overview.) The solution stands out for how it incorporate logistics components into broader aspects of supply chain risk management.

This second installment of our analysis introducing DHL Resilience360 explores what types of customers are the best fit for the solution. It also offers a checklist to help organizations assess the relevance of Resilience360 for their risk management initiatives. But first, this analysis begins by asking key questions in the context of organizational supply chain risk management maturity, readiness and priorities, including, “Who should use this solution and why?”

DHL’s Resilience360: A High-End Supply Risk Solution Hiding in a Logistics Service Provider (Part 1: Solution Overview) [PRO]

Global Risk Management Solutions

If your current lineup of risk management solution contenders fails to include a supply chain logistics services player (LSP), also known as a third-party logistics provider (3PL), you may want to consider a timeout. As the largest LSP in the world, with approximately 510,000 under its employ, Deutsche Post DHL Group has entered the solution space with a game-ready option that is worth a serious look.

If you have initial concerns about the “motivations” of a technology platform funded by a major physical supply chain participant; or the relevance of all of those supply chain operators; or how a company like DHL, which owns significant carrier assets, avoids conflicts of interest, well, you’re not alone. In fact, that pretty much describes the mindset we brought to our meeting with DHL’s Resilience360 product leadership.

In spite of these concerns, we came away extremely impressed. Resilience360 has functionality rivaling that of the market leaders (e.g., Resilinc and riskmethods).

DHL’s new solution suite offers a nice path forward, including a unique diagnostic approach that provides supply chain organizations a way to walk before they run full speed into a comprehensive supply risk application suite. For DHL, it’s a great way to move up the value stack as a more strategic supply chain services partner beyond core logistics execution, and it also takes advantage of the capabilities DHL has built in its core business, extending them to its customers. Such an approach is analogous to the classic IBM business model: “We’ve done that to ourselves very well and can do that for you as a service.” Of course, IBM might not be the shining example to hold up given its performance over the last few years, but let’s not let the data get in the way of a good metaphor.

In this two-part Spend Matters PRO analysis, we’ll dive under the covers and evaluate the capabilities of DHL’s multi-pronged solution and give some evaluation guidance on its capabilities relative to other options in the market.

Supply Chain and Procurement: Risk Management Strategy

Spend Matters welcomes this guest post from Maria Cecília Siqueira, of GEP.

Risk management has been discussed exhaustedly in every business forum in the last couple years. Yet in day-to-day operations, it may still be linked to its origins as a paper process restrained to the legal and compliance departments. Per EY studies, 82% of institutional investors would pay a premium price for effective risk management. Nevertheless, it would be safe to say that today risk management faces the “risk of apathy” with business managers.

Risk Expert Gary Lynch Discusses Hurricane Irma and Supply Chain Insurance (Part 2)

Editor’s note: This is Part 2 in a two-part Q&A. Missed Part 1? Read it here.

The unusually strong and ongoing Atlantic hurricane season prompted us to take a good look at supply chain risk. To that end, we talked to Gary Lynch, founder of The Risk Project (and considered by our own chief research officer Pierre Mitchell as “the best supply risk guru in the world”). In this Part 2 of the Q&A, Lynch talks about different insurances that businesses can consider, which industries are likely to be most affected by Hurricane Irma and why risk can be an asset.

Risk Expert Gary Lynch on Harvey, Irma and Supply Chain Risk and Resilience (Part 1)

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Hurricanes Harvey and Irma have come and gone, leaving devastation in their wake and — what’s that? More hurricanes on the way? At the time of writing, tropical storm Jose is expected to become a hurricane and make its way towards the northeastern U.S. Instead of looking at Irma specifically like we did for Harvey, we decided to take a broader look at supply chain risk. To that end, we talked to Gary Lynch, who, according to our chief research officer Pierre Mitchell, is “the best supply risk guru in the world.”

Updating Risk Management for the 21st Century: One CPO’s Approach

Deloitte Global CPO Survey 2016

When the financial crisis struck, in 2008, Ron Wilson learned fast that his company’s approach to managing risk had become obsolete. As chief procurement officer at Wilbur Curtis, Wilson intimately knew the ups and downs of managing a global supply chain. But when it came to risk, the Montebello, California-based manufacturer saw him as the point man — and that was it. The aftermath of the Great Recession made that impossible.

Terrorist Attacks Pose Growing Problem for Supply Chains Worldwide

Terrorist attacks on supply chains are on the upswing, according to a recent report from BSI, a provider of supply chain intelligence. The number of such attacks have increased 8.5% from last year, and the year-over-year increase in the proportion of terrorist attacks on supply chains versus all attacks has also risen, by 19%.

Assessing the Near- and Long-Term Supply Chain Effects from Hurricane Harvey

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Procurement professionals have their work cut out for them as rains from Hurricane Harvey finally recede. While the personal and human costs of the disaster are only beginning to be tallied, supply chain and logistics pictures appear even murkier. Here are the top supply chain areas Harvey has disrupted, as well as the near- and long-term consequences procurement organizations will face responding to the storm.