Risk Management

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Driven by the growing awareness of the risk that dependence on global supply chain networks represent to market share, revenue, cost targets, brand value, and ultimately shareholder equity, increasingly companies are looking to emerging supply chain risk management and resiliency strategies, practices, and tools for answers.

The aftermath of the Tianjin explosions: a global supply chain impact analysis - it’s far worse than you think!

The effects are being underestimated and will ripple well beyond the immediate regional economic zone and have global implications, the repercussions on the global supply chain will be felt over the next few months and perhaps years to come.

Earlier this month, the U.S. Consumer Product Safety Commission (CPSC) approved a pilot program to test an electronic filing system that will require importers to submit data electronically for imported consumer products.

Third-Party Logistics providers and shippers are looking to re-route cargo to other Chinese ports following Wednesday’s devastating explosion at the port of Tianjin.

The issue of 3PL commoditization has been repeatedly raised, with 3PLs expressing the desire for shippers to view them more as strategic partners and not just as suppliers.

While physical threats to international sea and air cargo gateways have been top of mind ever since the events of 9/11, security analysts say more attention should be given to reduce exposure to internet penetration and hacking attacks. Should existing cyber security processes be compromised, they add, a cascading effect might be created, thereby disrupting huge segments of any given supply chain.

As supply chain complexity continues to evolve it's now imperative to be prepared for supply chain disruptions.

As globalization accelerates, business increasingly is conducted in a borderless, interconnected and almost invisible way, leading to a potential loss of strategic control.

Japan's manufacturing industry weathered the post-Fukushima crisis pretty well, all things considered, but other countries are less prepared for big disasters report says.

Resilient companies with increased flexibility such as Apple can recover from supply chain disruptions more quickly than their competitors and therefore have a competitive advantage, which could potentially increase their market share.

The rapid and adverse nature of events, such as a data security breach, or an inflammatory social media post, illustrate the importance of assessing risks and designing appropriate response plans that adequately address risk velocity.

Improved risk assessment provides greater agility and greater protection against disruptive and potentially catastrophic events that characterize prolonged periods of decline - the manufacturer becomes more agile and able to recognize and respond to such events, and to capitalize on the opportunities such events reveal.

For real results, organizations should implement supply chain risk management practices, especially risks presented by Information Technology disruptions.