Category Archives: Risk

GM ignition switch: Fixing the problem, not the blame

GM’s defective ignition switch problem came to light publicly after 11 years of installing a faulty ignition switch and after 13 deaths were linked to it. The new CEO, Mary Barra, vowed that she would get to the bottom of …

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Vertical Integration: The Pendulum Swings Back

An article in today’s WSJ, “Companies More Prone to Go Vertical,” discussed the current trend for some companies such as Oracle, Pepsi, IBM, General Motors, Boeing and Apple, to cite a few,  to return to the practice of …

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Getting Senior Management Support for SPM

Many people struggle with getting senior management support for supplier performance management initiatives. And, according to the editor-in-chief of Supply Chain Digest in his July 2nd editorial, many people don’t even know what senior management support means.  Most …

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Got scorecards? Now what?

My previous post about why supplier scorecards fail generated a lot of interest. So today I’m going to write about one of the biggest reasons for failed supplier scorecards: There is little or no action or follow through that results …

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Giant performance failure in a peanut supplier

The failures at Peanut Corporation of America are tragedy in every way. This supplier failed to meet both regulatory and customer requirements. Its customers failed either to uncover or report the failures, and people died as a result. Now a …

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Scorecard Statistics — do you get what you measure?

As the saying goes, statistics can be made to prove anything – even the truth.

Or, everything is vague to a degree you do not realize till you have tried to make it precise (Bertrand Russell).

The customer sends the …

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11 Reasons Why Supplier Scorecards Fail

Scorecards have become the Holy Grail of supplier performance management.  I find that most companies have some kind of supplier scorecards. And if not, they are in the process of developing them or want to develop them. Expectations for results …

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When Supply Risks are Self-Induced

Some supply risks can be caused by the customer firm itself and thus provide a real chance of avoidance in the first place.

What? You thought supply risks were all caused by forces beyond the customer firm’s control. Think again. …

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The game of risk: keeping supplier risk at bay

What steps can you take to avoid supply risk? Be methodical and be proactive. Segment the supply base for risk. And look beyond just the obvious categories. First, look at all types of suppliers who have risk potential, depending on …

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Teaming up to uncover supply risk

The recent article in Purchasing, “Allegheny Technologies Designs a Broad Risk Strategy”, (8/14/2008) is one of the rare glimpses into how some companies are actually dealing with supplier risk. Rather than just talking about risk or not

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