Supply Chain Risk War Story
The mandate for supply chain risk management (SCRM) continues to grow in importance across industries regardless of the size of the enterprise. One theme we continue to see from our customers is that SCRM is viewed as a tool for competitive advantage. How can that be you ask. Please read-on our supply chain risk war story.
One example our customer shared with us began with an earthquake in Italy. The earthquake caused a bit of damage to the surrounding region that caused a disruption in the heavy equipment manufacturing supply chain. Specifically there was a supplier of specialty tires that was unable to meet production commitments.
Supply chain risk war story: The risk monitoring solution
In this instance, one of the largest vehicle manufacturers reacted quicker than its competition to secure the remaining inventory and the production of an alternate site. They were able to secure inventory because they had an active risk monitoring solution with a set of remediation plans in place. They were the first to act.
Economic damage in the range of hundreds of millions of dollars
Another manufacturer wasn’t so prepared and their production was halted as they were unable to procure the necessary parts to complete vehicle production. More than 1,000 vehicles had to put on ice until production was up and running again causing economic damage in the range of hundreds of millions of dollars in lost revenue.
So, risk as a competitive advantage, you bet!
Be prepared – treat your supply chain risk as a top priority, your customers demand it and your brand deserves it.