Manufacturers of all sizes rely on their supply chains to meet the needs of customers. It is critical for the success of manufacturers that their supply chains are resilient and responsive to changing business needs and events. Over the past few years, maintaining a resilient supply chain has become much more difficult as a result of global expansion, changing regulatory requirements, outsourcing of various parts of the supply chain, and the Internet of things. These changes have led to a loss of supplier intimacy, increased pressure on effective production planning, greater reliance on outside parties to meet customer demands, exposure to diverse political risks, and pressure on capital allocation. What can manufacturers do to establish a common framework to manage and assess all elements of their supply chain?
We will present a clear framework that has been used in achieving a resilient supply chain that addresses all elements, from sourcing to the customer. We will discuss how an effective supply chain risk management and working capital model can be used to strengthen the resiliency of the supply chain. These methods have provided manufacturers with a structured approach for identifying critical points in the supply chain to help design effective control structures and furnish monitoring functions to provide early warnings of issues in the supply chain.
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As a result of participating in this session, you should be able to better:
- Recognize critical elements of a resilient supply chain and their interrelationships
- Explain how a supply chain risk assessment can provide guidance on where to implement risk mitigation activities that create the greatest value to the organization
- Demonstrate an approach to reviewing working capital to help identify issues in the supply chain affecting effective allocation of capital
- Identify how to segment inventories in order to gain additional insight into potential risks and some of the common areas that exist