White Paper Archives—Supply Chain Thought Leadership
When researching a fulfillment and supply chain vendor, many companies put themselves at risk by focusing only on the easy-to-compare unit prices, such as a per-order shipping fee. Serious quality problems can arise if the wrong vendor is chosen. This can impact the entire organization and threaten a company’s survival. Even small quality errors can impact a company’s bottom line. This paper looks at how to review costs while analyzing the risks involved with basing a business decision on unit costs alone.
This paper covers how to manage risk when quality control procedures fail and there is no recall contingency plan. Long-term brand impact, operational response, communication strategies, and the cost associated with various recall options are detailed. Coauthored by Gailen Vick and Hannah Kain.
Supply chains today are global – even if a company has its manufacturing in-house and on-shore, chances are, their parts or raw materials originate in 10-20 countries around the globe. In the last 15 years, companies have adopted Lean and Just in Time (JIT) practices as well as Build to Order type capabilities in a big way – this means, that globally stretched supply chains are overly optimized to operational parameters like lead times and often have low levels of buffers that would help to withstand disruptions. Business metrics focus heavily on cost reduction and inventory turns – short term incentives tied to these metrics further result in decisions at every level that erode resiliency. Traditional supply chain management practices leave vast gaps in resiliency because supply chain risk management is fundamentally different from every day operations management. When companies fail to recognize and appreciate these differences, they fail to manage risk effectively. Coauthored by Bindiya Vakil and Hannah Kain.
Supply chains today have become more complex, dynamic, and geographically diverse than ever before. This makes them vulnerable to a variety of risks, such as geo-political risk, economic risk, fluctuating demand, compliance risks, reputational risk, and the risk of natural or man-made disasters.
Ineffective management of these risks can impact the profitability and reputation and even survival of not only the supplier, but also the company who hired them. Therefore, it is critical for companies to collaborate closely with suppliers to manage and mitigate supply chain risk.
Shipping errors can be expensive. They impact customer satisfaction, customer retention, and profit. Ultimately, “simple” shipping errors can impact the entire organization and cause customer relationship and even cash flow problems. This white paper illustrates scenarios to show how “simple” shipping errors can become costly along with common consequences of shipping errors.