Listen To Our Supply Chain Risk Webinar With riskmethods & Titleist

Last week we participated in a webinar with riskmethods, the supply chain risk software providers, and one of their clients, Jay Traficante of Acushnet. That firm owns the Footjoy and Titleist brands, well known to golfers everywhere. Traficante is VP of Supply Chain at Acushnet, with quite a range of responsibilities in and around that area, and he spoke about the risk management journey the firm has been on in recent years.

Previous issues arose following natural disasters, and as he explained, even when your first tier suppliers are not situated in an earthquake zone, you can find that the problem comes from the second tier and beyond. For instance, if all your first tier suppliers source a critical material from the same provider, then you may well have no visibility of what it actually a big risk down the supply chain.

Acushnet’s first serious attempt at getting to grips with supply chain risk involved building an Excel based “system” to capture and manage information about key suppliers. That involved a complete assessment of 40 tier 1 suppliers for major components across areas including market availability, difficulty of substitution, quality history and other factors. Not surprisingly, this took over 6 months to complete.

The firm then put actions in place to mitigate identified risks; all looked good. However, the programme proved to be just too manual and labour intensive to maintain. It just was not sustainable, did not cover those tier 2 risks, and did not support real-time monitoring of risk activities and events.

So Acushnet are now modelling their entire supply chain using the riskmethods platform, including Tier 1 and tier 2 suppliers, shipping ports used and other key factors. When this work is completed, “we will have complete supply chain visibility”, Traficante says. But the journey continues – and “risk mitigation is not an activity or a project, it must be assessed, monitored and reviewed as normal daily practice”.

It is an interesting story, and we got some great questions from the webinar delegates too. If you missed the event first time round, you can access the recording of the webinar and the slides here, free on registration. And we will be returning to the topic of supply chain and supplier risk on a regular basis here over coming weeks; look out for our next installment soon.

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