New study looks at risk management in the supply chain Aberdeen's benchmark of 180 enterprises found that 80 percent of companies have experienced supply outages within the past two years. These supply glitches negatively impacted customer relations, earnings, time-to-market cycles, sales, and brand perception. "Hurricane Katrina spotlighted the fragility of global supply chains," said Tim Minahan, SVP of Global Supply Management research and report author. "Years of cost-cutting and lean operating practices have made businesses highly vulnerable to supply disruptions. Pressures for business continuity and regulatory compliance will force companies to adopt procedures, metrics, and systems to make supply risk management a core business discipline within the next five years." Aberdeen's new report identifies five strategies for managing supply risks: 1. Define and enforce standard performance and risk measures and assessments. 2. Make risk management a core and repeatable business discipline. 3. Adopt sourcing methods to balance cost, performance, and risks. 4. Leverage technologies and information services to improve risk planning, monitoring, and response. 5. Develop and collaborate with suppliers to detect and mitigate risks. "Enterprises employing these methods outperformed their peers in overall reduction of supply chain disruptions, shoring up delivery, cycle times, and quality performance," said Minahan. This report identifies today's leading supply risks; quantifies the costs of disruptions; and examines the management, strategies, intelligence, and systems that leading enterprises are employing to assess, track, and mitigate supply risk. It also includes case studies of enterprises applying these techniques to better assess, predict, and manage supply risks. To download a complimentary copy of the report, follow this link: http://www.aberdeen.com/link/sponsor.asp?cid=1970 (registration required).
•Date: 11th October 2005 • Region: US/World • Type:
Article •Topic: BC general |
