Supply chain risk – not just a quality/safety issue…. August 15, 2007
Posted by Jonathan Gatrell in News, Supply Chain Visibility.trackback
As many companies embrace the growing trend of using contract manufacturing, the recent product quality and safety recall announcements around toys are just one type of risk for the supply chain and the most visible/topical. Clearly sourcing and quality/safety are concerns, but other risks exist. Many organizations have no resiliency to materials shortages, transportation roadblocks or custom slow downs which can sully an organization’s brand and thier customer relationships.
The continued extension of global supply chains is requiring many supply chain leaders to better understand what is happening in their supply chain post-production while goods are in transit. The growing discipline of supply chain risk management is focusing more and more beyond sourcing to developing visibility and enablement strategies which drive compliance and confidence in the ability to exceed market and customer expectations. In fact AMR cites significant risk with supplier failures as a key item for consideration when understanding risk in the supply chain:
Supplier failures/continuity of supply and commodity cost increases are top concerns…regulatory risks, and logistics disruptions.
So as organizations become more interdependant on their supplier communities there is a considerable growth in risk to the brand with their ability to fulfill on time consistent with their customers’ service level and quality requirements.
Comments
Sorry comments are closed for this entry
[...] growing focus on security is yet another way to better manage risk in the supply network as well. Risk varies from supplier failures to brand risk associated with [...]