The Supply Risk Management Category

Back in Coastal Georgia with the Evacuation Blues Again

Hurricane Matthew and Irma. Two evacuations in one year have proven more than enough for me (and I’m hearing there may be yet another one on the way). In both cases I lost more than a week of my life. Whether holed-up with friends hooked on reality TV or moving between cheap motels with my ill-mannered pets, it doesn’t make much difference: it’s a totally depressing scene that has moved me to action. I ain’t going nowhere next time, no how.

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.

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.

Post-Hurricane Harvey, 3 Supply Chain Risk Mitigation Strategies to Keep in Mind

It’s a simple yet excruciating irony that in a natural disaster that dumps more than 50 inches of rain on a single region, water becomes widely unavailable for consumption — for either people to drink or factories to function — even as it floods scores of neighborhoods. So it’s no surprise that water, and the havoc it continues to wreak in Houston and other areas, is central to the issue of supply chain risk management in the wake of Hurricane Harvey. Spend Matters has been covering the hurricane (see related stories below), which had been downgraded to a tropical storm soon after, and the disaster spurred a recent webinar presented by Resilinc, a supply chain resiliency solutions provider.

Hurricane Harvey Q&A: What Procurement Practitioners Should Be Doing Right Now

In this disastrous aftermath of Hurricane Harvey, emerging details about supply chain repercussions both locally and nationally have finally begun to paint a fuller picture. With Houston and its greater regional area comprising such a significant industrial hub, trucking, freight and petrochemical supply have all been frozen to varying degrees. But perhaps the biggest hit is the massive uncertainty over the full extent of the medium and long-term impact. We caught up with riskmethods' Bill DeMartino, general manager of North American operations, and Heiko Schwarz, the firm's founder and managing director, for a quick Q&A about what procurement professionals have been — and what they should be — thinking about in the wake of the disaster's fallout.

Hurricane Harvey Disrupts Supply Chains: Resources for Procurement

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Hurricane Harvey, now a tropical storm, continues to make headlines as it slowly moved from southeast Texas into southwest Louisiana. The New York Times reports that the storm has dumped a record 51.88 inches of rain on Cedar Bayou, Texas, and that the state’s flood-related death toll has reached 31. In addition to the non-quantifiable losses to the affected residents, the storm is estimated to carry an economic cost of tens of billions of dollars.

There’s a Reason Your Supply Chain is Making You Nauseous: You Don’t Know all of the Risks that Dwell Within It

Something about your supply chain is making you feel like your lunch is about to come back up, and you don’t know why. Sure, you’ve heeded the commodity forecasts and hedged your purchases for the rest of the year. Maybe you even dual sourced a critical component of your product to ensure the first tier of your supply chain is always reliable. But then you start to wonder about the suppliers of the suppliers to those suppliers and how exactly they extracted those raw materials. Or you remember the most recent ransomeware attack and how it shut down that auto manufacturer’s supply chain for several days. And then the nausea sets in.

Geopolitical Supply Chain Risk is Knocking on Your Door — Here’s What You Do

Pop quiz, hotshot. There's a bomb on a bus. Once the bus goes 50 miles an hour, the bomb is armed. If it drops below 50, it blows up. What do you do? What do you do? For those of you too young to remember or too old to care, this quote from “Speed,” the summer blockbuster of 1994, delivered by Dennis Hopper’s character, pretty much sums it all up. (I admit, for this 11-year-old at the time, the adrenaline rush was palpable, and with no big Marvel-style special effects!) In a different summer rife with risk — the one we’re in — the quote rings especially true.

State of Risk 2017: Procurement Needs to Be More Proactive About Supply Chain Risk Management

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That procurement is shedding its origins as a back-office function is old news. As organizations become more advanced, their role in the overall company is evolving into a more strategic one compared with its tactical past. And a crucial component of this strategic transformation is taking responsibility for mitigating supplier and supply chain risk. But how many procurement organizations actually have a comprehensive risk management strategy in place? RapidRatings and ProcureCon Indirect East teamed up to conduct a risk-focused benchmark survey of 88 procurement executives, the results of which are published in a report titled “The State of Risk.”

Here’s How You’re Going to Get Supplier Risk Ratings in Less Than 10 Years

Imagine you're strolling along — or perhaps your self-driving vehicle is spiriting you around the new megacity in which you live — in the year 2025, while doodling around on your iPhone 15 (still unsafe while driving? or would that be cool by then since you're not actually driving?) At any rate, while you're checking a push notification on LinkedIn telling you to congratulate your college roommate who just got a new job at The New Facebook, the supply risk technology that your procurement organization uses is also using LinkedIn; only behind the scenes. For example, as you tap out a "Congrats on the gig, bro," an AI bot lets you know that LinkedIn has been sensing defections at a strategic supplier you have a relationship with. On its own, perhaps no big deal — but synthesized with other data, the picture being painted is the new normal for supply risk management.