Supply chain risk mitigation moves to the C-level suite

According to Kelly Thomas, senior vice president, manufacturing, JDA Software, last month’s natural and nuclear disasters in Japan have resulted in stories of “unthinkable” devastation and human loss.
By Patrick Burnson, Executive Editor
April 19, 2011 - SCMR Editorial

New mandates for supply chain professionals are coming into play as a consequence of recent disruptions in the global supply chain, said a prominent software industry executive.

According to Kelly Thomas, senior vice president, manufacturing, JDA Software, last month’s natural and nuclear disasters in Japan have resulted in stories of “unthinkable” devastation and human loss.

“Because of that country’s position as a global center of commerce and trade, it has also provided perhaps the most sweeping example of supply chain upheaval,” he said. “This is the latest in a line of headline-making disruptions that only seems to grow ? the economic downturn of 2008-2009, continuing unrest in the Middle East, international terrorism, hurricanes, oil spills, port strikes, and product recalls.”

In an interview with SCMR, he said risk mitigation in the supply chain has moved from being a “compliance” responsibility to a “C-level” obligation.

“There simply has to be an assumption now that ‘black swan’ and ‘outlyer’ events are going to take place from time to time, and multinationals have to be better prepared for them.”

Thomas noted that while it is impossible to foresee every natural disaster, act of terrorism or other supply chain contingency, a consideration of such disruptions must be part of the foundational strategic planning process from manufacturing all the way to the store shelf.

“Predefining the right set of response levers to be activated in the event of supply chain disruption helps prepare businesses to manage supply chain contingencies based on long-term strategic priorities instead of scrambling to make hasty, ill-informed decisions when the unpredictable occurs,” he said.


Jane Fazzalari, vice president, retail industry strategy, JDA Software, added that collaboration is also key.

”The retailer that engages in a relationship based on trust and transparency around cross-enterprise strategies and business planning will be in a much better position to secure constrained supply

For related articles click here.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

You’ve heard the old saying, it was the best of times, it was the worst of times. Rob Handfield sees this as the best of times for procurement professionals, who have an opportunity to deliver real value to their organizations

While core metrics were down from a very impressive July, the August edition of the Non-Manufacturing Report on Business from the Institute of Supply Management (ISM) was still very strong.

The Clean Cargo Working Group (CCWG) has released a report indicating that in 2014 average CO2 emissions in the global container shipping trades declined 8.4 percent from the year before.

UPS Freight, the less-than-truckload (LTL) subsidiary of UPS, recently announced it has rolled out a new service center facility in Franklin Park, Illinois. This is the company’s fifth Chicago-area service center along with other ones in Aurora, Chicago, Palantine, and South Holland.

Putting the renewed strength in the truckload market into a very positive perspective is a report issued by Avondale Partners analyst Donald Broughton, which was released yesterday. Entitled, “Q2’15 Trucking Capacity; Goldilocks Era Continues,” Broughton explained that in the second quarter only 70 truckload fleets failed, or exited the business. That number may seem high to some, but it is not, especially when you consider that the second quarter of 2014 saw more than five times as many truckload carriers, 375 to be exact, exit the business.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.