Gain Competitive advantage through Supply Chain Risk Management
Everyone understands how physical events such as a fire in a warehouse, flooding, or a hurricane can impact and significantly damage one’s supply chain. Our VUCA environment (volatile, uncertain, complex & ambiguous) is more and more complex to manage a supply chain efficiently. Over the past years, social issues have become as important as traditional supply chain issues. In a matter of a heartbeat, a Tweet from the other side of the globe can impact a company’s reputation.
In today’s world, most organizations have a good/decent visibility on their first suppliers. But what about their tier 2, tier 3,…? Managing your sub-tiers properly is crucial as most of the disrupting factors originate at their level. The worst thing that can happen for any business is an unexpected event that disrupts your activities, leading to potential customer losses. Some 70% of companies that suffer a major disaster and don’t have any form of contingency planning go into liquidation within 24 months.
Supply-chain risk management (SCRM) is the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment to reduce vulnerability and ensure continuity. Implementing a Supply Chain Risk Management program is a key differentiator factor that will allow you to remain competitive in the future. Only 8% of the companies had a high-risk maturity in early 2018. How much bargaining power would you have if you were able to say, “we are less risky than our competitors”?
Intys innovative approach
Intys Consulting brings its added value through its end-to-end supply chain knowledge. In addition, we help our customers to start their journey towards more risk management maturity by:
- Defining a common language across your different departments
- Anticipating issues to ensure you always have a business continuity plan
- Digitizing your supply chain
In 2018, we managed a risk management workshop for one of our customers, with 20 buyers representing all their product categories. Out of this single workshop, we were able to highlight 45 new risks, for which 54% were linked to vendor management.
In synergy with our sister company “Vadis Technologies,” we can help you with the challenge’s digital aspect. Vadis Technologies has deep knowledge of data as a service and provides in an automated way more than 150 indicators linked to the financial health of an organization.
Impact and results
65% of companies report experiencing a significant supply chain disruption in the last 12 months resulting in a loss of $1.2 million or more for 22% of them! *
A good SCRM program will enable you to have good visibility on your end-to-end supply chain. You will get 360° views on your risk, which will allow you to share information within your organization, have a better view of the financial health of your sub-tiers, create awareness about potential disruptions, and have business continuity plans.
Getting full supply chain visibility is not easy, but in the end, the pay-off is worth it!
*(Source: Supply Chain Resilience Report 2017, Business Continuity Institute.)