Companies across all industries work in supply chains, connecting various operations and branches to produce a final product. While supply chains allow different companies to perfect their trade and participate in a larger entity, many are riddled with various risks and inefficiencies that negatively impact the bottom line. A supply chain, by definition, is composed of several bodies all operating to a certain degree of independence while still functioning as a part of a whole.
Because various tasks occur in disparate locations, operations and communications can easily become disjointed. This leads to wasted time, energy and money on remedying avoidable issues or fixing glitches in the system. While a kink in the supply chain can be as minor as a shipping delay, others may result in serious consequences that may be hard for the company to recover from. To avoid certain risks that pose more serious threats, supply chain leaders and experts have launched strategy sessions to keep the industry abreast of the latest innovations and precautions to ward off common problems.
Leaders speak up
It was recently announced that the second installment of the Executive Supply Network Risk Forum will be held in February, attracting global supply chain strategists and experts from around the world. The goal of the event will be to brainstorm different ways companies can maintain successful supply chains while optimizing business operations and reducing risks. Most supply chains rely on business integration technology and risk management solutions to reduce vulnerability to certain problems while increasing managerial control over all operational variables.
According to John Campi, managing partner of a management company and supply chain thought leader, many supply chains are working to achieve cost savings while bypassing the complexity of the growing global economy. New standards and regulations are placing greater demands on businesses worldwide, calling for increased innovation and support to ensure compliance and operational integrity. Companies that ignore these complexities are vulnerable to a variety of risks, while enterprises that work with supply chain management experts have resources to mitigate these risks.
"These new, complex global networks, logistics infrastructure, and unaffiliated ownerships have created an expanding complex risk/value profile," Campi said. "This transformation demands a new approach to measuring risk inherent within the supply network architecture. We have seen this risk clearly demonstrated with Hurricane Sandy, and its impact on the global supply network."