This infographic provides an overview of the most prevalent supply chain risks, the departments they affect, their financial impact on your business, and how they can be resolved. Take a look!
Addressing the Risks
- Based on survey data from the University of Tennessee, 90% of businesses don’t consider the supply chain risks when sourcing production.
- This is problematic because there are so many moving parts to a supply chain, and each part has their own set of variables which, if changed, would disrupt the process.
- This disruption has the potential to cost your company a ton of money, or worse—lead to your company’s demise.
- Manufacturers and suppliers must learn to effectively manage those supply chain risks, starting with identifying differences in culture, language, values, and organizational behavior.
Risks & Their Impacts
Many businesses outsource production to save on labor costs, however, there are other costly factors that need to be considered, as well as acted on, in advance.
Take a look at the chart below to identify some of the most common supply chain risks and their path of impact.
Software and Analytics Solutions
Minimizing your supply chain risk starts with planning.
In order to create an effective supply chain management strategy plan you need the tools that deliver the data that enables you to forecast risks, monitor changes, and make well-informed decisions.
With the right software and analytics programs, you will have the ability to:
- Maximize the value of currently installed systems vs. Rip and Replace.
- Integrate third party data including:
- Supplier Lists
- OLFAC/Watch Lists
- Social Media Monitoring
- Create a complete supply chain picture by bringing together operational data and third party data.
- Use predictive analytics to discover your supply chain risks and weaknesses.
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