The Supply Chain Visibility Category

Determining the Avoidable and the Unavoidable in Supply Chain Risk

category management

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.

How Well Are Your Peers Doing in Supply Chain CSR? EcoVadis Releases New Report

If you’re a small or medium-sized construction company, congratulations. Chances are you’re doing pretty well in your supply chain corporate social responsibility (CSR) initiatives. Likewise if you’re a large company in the financial, legal, consulting and advertising markets. On Tuesday, EcoVadis released its first annual Global CSR Risk and Performance Index, which evaluated 20,400 companies according to 21 criteria related to the environment, labor practices and human rights, fair business ethics and sustainable procurement.

The Role of Logistics in Reviving Retail Markets [PRO]

Everybody knows about “bricks and clicks” in the supply chain, but I have a question: Can the clicks save the bricks for those who’ve been getting Amazoned? In other words, does an increasingly fragmented and tech-enabled market for logistics services have the right “stuff” — the information-based mortar to put traditional retail’s bricks back together? While Amazon’s vertical integration has experts predicting a knockout blow to competitors, across the supply chain the industry’s largest players are getting even larger and they’re learning how to counterpunch.

Amazon has single-handedly accelerated the evolution of logistics from a retail and distribution standpoint. But Wal-Mart is no slouch either, even if it’s generally a step behind. Together, their demand and requirements for ever-increasing service levels have quickly reshaped the logistics services landscape, redefining what’s possible not only for their own businesses but for all businesses across industry. Yet the mega players aren’t just in the retail end of the supply chain. Contract manufacturers are going big and going digital (e.g., Flex’s foray into incubating supply chain startups like Elementumand Jabil, too). Carriers are also supersized, with FedEx and UPS are expanding their digital capabilities, and DHL is doing some extremely innovative work in supply risk management that we’ll be featuring soon in an upcoming PRO series. The logistics market is a very interesting ecosystem for the broader supply chain because logistics is like the circulatory system in an animal — and it’s critical to support all the animals big and small, not just the gorillas.

Supply Chain Visibility: Big Brother Shippers and Truckers Need a Prenup

trucking

Over the last several weeks, I have watched five supply chain visibility product demos from very different and successful solution providers — each focused on track and trace capabilities designed to benefit freight shippers — who explained to me that knowing the exact location of a shipment has become an industry requirement. Yes, I raised my hand and asked “why,” because watching an icon move on a map, while cool, just didn’t strike me as essential. As I learned, Wal-Mart and Amazon, once again, are responsible for the shift.

Blockchain Technology & The Reformation of Procurement as We Know It

Spend Matters welcomes this guest post from Thomas Cherian of GEP.

The reality of blockchains becoming the basic building block of tomorrow’s connected world is fast approaching. According to some, that day has already arrived. A lot has happened over the past year regarding the revolutionary concept of blockchains, which are expected to store an estimated 10% of global GDP in its network over the next decade.

Many Companies Still Struggling with Conflict Mineral Reporting

mining

Nearly two-thirds of the companies that filed conflict mineral reports with the U.S. Securities and Exchange Commission this year did not disclose the country of origin for the tin, tantalum, tungsten and gold (3TG) in their supply chains. According to a new analysis of the 1,216 conflict mineral reports filed for 2015, just 33% of companies identified whether these minerals were sourced from conflict zones in Africa.

Big Data Presents Opportunities for the Supply Chain, but are Organizations Taking Advantage of It?

big data

Big data analytics has a number of applications within the supply chain. Yet there is still some lag in adoption of solutions that help mine through the wealth of information that can lead to an increase supply chain visibility, reduce business risks and other benefits. Recent research has shown while the majority of companies understand the opportunities big data presents, fewer are actually implementing analytic capabilities and integrating these tools into supply chain functions.

GSA Issues RFI For Solution to Tackle Counterfeit IT Products in Federal Supply Chain

Supply Chain Fraud

The U.S. General Services Administration announced early last week it looking for a supply chain solution as part of a pilot program aimed at helping federal procurement professionals authenticate IT and communication products in the government’s supply chain. The independent organization that supports federal agencies issued an RFI May 9 to gather information about the development of a supply chain solution and interface that would prevent counterfeit IT components from entering the federal supply chain.