10 Tips For Getting Started With Global Supply Chain Risk Management Programs

In exploring AGCO’s success with implementing a global supply chain risk management (SCRM) program, we can summarize our key recommendations to other manufacturers and services oriented companies in 10 tips:

  1. Start to engage with solution providers – Try them out, start to inflict the pain of visibility on your internal stakeholders, teach your organization to act with many blinders removed and adopt a more strategic level of thinking.
  2. Solutions are in a state of flux – Early adopters will likely have to go through radical changes in their programs as this industry matures, but this is preferable to remaining on the sidelines, getting stuck deeper in the old ways.
  3. Heuristics will make a big difference over time – Both in helping to eliminate false positives and also in identifying real issues with greater precision. Aggregated metadata from your third parties, combined with other big data sets, all processed in real time, will drive a change toward solutions that not only show what your supply base looks like but also helps manage risk scenarios and develop mitigation plans of action.
  4. A picture is worth a 1,000 conference calls – Think of a map, showing all your major internal and external business relationships (manufacturing facilities, warehouses and distribution facilities, logistical paths, suppliers and their suppliers, etc.). This simple illustration can quickly rally stakeholders around a common cause.
  5. Good SCRM analysis requires good data – Don’t skimp on the prep work. You know that sooner or later you do need to get to a clean master data management understanding, as well as item level PO analysis. You also need to fully assess your key suppliers and their immediate supply base and product lifecycles. This is a good time to start on that journey.

Read more at 10 Tips For Getting Started With Global Supply Chain Risk Management Programs 

If you have any opinions regarding this topic, leave your comments below in the comment box.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

Sustainability Drives Supply Chain Professionals to Learn New Finance and Accounting Concepts

At JDA’s Focus event, Rich Beck, the Sr. Vice President of Global Operations at PepsiCo, gave the keynote on the second day of the conference. Rich said that their supply chain goals included “digitizing the value chain” (JDA was a key solution provider in this area) and “sustainability.”

I’ve been covering supply chain management for twenty years. Last year, I spent 20 percent of my time on the road. And I hear many, many supply chain speeches. I can count on a few fingers of one hand the number of supply chain executives I have heard say sustainability was one of their major goals.

That will change. 72% of the companies included in The S&P 500 Index® publish sustainability reports, up from just under 20% in 2011. Over time, companies’ sustainability efforts become more mature and corporate sustainability goals filter down and become key supply chain goals as well. And these are not incompatible goals. At PepsiCo supply chain sustainability includes “reducing their inputs while optimizing outputs;” but really, that has always have been a goal for supply chain organizations.

The CDP, formerly the Carbon Disclosure Project, is the best known of the organizations that are helping (or pressuring, depending on your point of view), companies to do better. Thousands of companies work with the CDP to measure, disclose, manage and share environmental information.

The CDP scores companies on their performance. “A high performance score signals that a company is measuring, verifying and managing its carbon footprint, for example by setting and meeting carbon reduction targets and implementing programs to reduce emissions in both its direct operations and (the extended) supply chain.” Companies score higher if they are focused not just on internal emissions, but the emissions caused in their extended value chain. This causes a ripple effect as big companies with sustainability goals request their suppliers to also reduce their emissions.

Read more at Sustainability Drives Supply Chain Professionals to Learn New Finance and Accounting Concepts

What is your opinion towards “sustainability”? Do you think it is a priority? Share your thoughts with us in the comment box below.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone