Managing Supply Chain Risk in Times of Uncertainty

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Managing Supply Chain Risk in Times of Uncertainty_HFA blog

Robert Kennedy proclaimed in a speech many years ago, “There is a Chinese curse which says, ‘May he live in interesting times.’ ” As current events continue to unfold, it would seem as though we are living in increasingly interesting times. Recent announcements by many auto manufacturers that production lines have been halted due to the impact of parts availability could be a warning for supply chains around the globe. A truly integrated, interconnected economy can create global risks.

The scope of the supply chain risk is enormous, but there are a number of basic concepts that might be helpful for organizations that are asking what can be done to mitigate potential risk in the here and now.

  1. Prioritize disruptions based on business impact on the customer
  2. Create a dedicated command and control structure
  3. Communicate via the command and control group to the following
      • Suppliers
        • Create metrics and expectations regarding the recovery process
          • Fill rates
          • Lead times
          • Other relevant issues
          • Share prioritized needs
          • Daily reporting
      • Customers
          • Set and manage expectations
          • Provide immediate and transparent feedback regarding concerns and capabilities
          • Seek feedback regarding customer priorities and needs
          • Daily reporting
      • Internal Stakeholders
          • Set guidelines for authority and decision making (i.e., Incident Playbook)
          • Daily reporting
          • Listen and act upon operational feedback to manage resources
          • Define when operational capability has returned to “normal”

Crisis represents an opportunity for success and a potential springboard to improve processes. Communicating frequently, defining priorities, and aligning all partners may very well enhance the relationship and build trust with both supplies and customers. Remember to stay calm and carry on.

 

CLICK HERE for more resources from HFA to help your operations & warehousing.

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