A recently released Accenture study, “Don’t Play it Safe When it Comes to Supply Chain Risk Management,” shows the wide range of approaches companies take when it comes to managing their supply chain risk.
Unfortunately, only slightly more than one quarter of the companies surveyed are taking the most important tack, developing a “playbook” or plan that various parts of the organization can implement immediately when a crisis strikes.
It’s well and good to identify alternative suppliers that can step in when needed. And it’s critical to monitor all of your suppliers (not just Tier 1) on an ongoing basis for troubling trends and potential risks. Building in excess capacity in the event of high volatility is important, too.
But if you don’t have that plan or playbook everyone can follow, you risk having everyone react “one off” and potentially exacerbate the crisis.
On Wednesday, July 16, ISM will host its Risk Management Summit in New York City. It’s an opportunity to learn how to identify and oversee critical risks, and learn the key measurements you need to effectively communicate and implement a risk strategy. For more information, visit ISM Conferences for 2014.