It’s been proven that supply chain risk events can cause a company’s stock to tank and company to lose market value. Now enter the new supply chain risk market makers: the channel checkers. These are the analysts who follow large manufacturing firms’ supply and demand and make a living out of predicting whether production [...]
If you ever thought that you could leave product recalls up to retailers and manufacturers, think again. That was risky enough. Now there’s a new risk, according to article today in the WSJ, that you need to worry about – which suppliers produced the items at your neighbor’s yard sale and whether the items [...]
Some people are heaving sighs of relief that Chrysler is emerging from bankruptcy in the arms of Fiat and that GM is officially in bankruptcy soon to emerge as leaner and meaner entities. However, many are left holding the proverbial bag. Who are they? The unsecured creditors who are lining up to salvage whatever [...]
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. While catastrophic supplier failure and supply continuity disruptions have been noted as supply managers’ biggest [...]
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 your type of business, such as: direct material suppliers, suppliers providing important services, and transportation [...]
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 acting on Sarbanes Oxley directives to address supplier risk, some companies are taking action. What I found [...]
McKinsey recently published the results of its global survey on managing global supply chains. To boil down a seven-page article: they aren’t managing the risk. Or to quote the article: “relatively few respondents…say that their companies are translating the importance they place on these [risk] factors into corporate action.” Are we surprised at this [...]