We all know about outsourcing,
longer leaner chains. The basic assumption is that somehow
these supply chains perform better. And in some respects
they do. But leaner chains take on more exposure.
Business risks—supply chain risks—have
been with us before outsourcing. We account for risk through
buffers of various kinds, but buffers cost money, which could
divert capital away from real market demand opportunities
or investment capital for the upturn. With our ability to gain
end-to-end visibility through foundational technologies, we
can now begin to address a variety of risk elements across
the value chain.
We all learned in the last two years, that
having bad advice can cost you—loss in your net worth,
bad business decisions, etc. Talk about poor risk management!
If some organizations thought in more structured ways about
their boards, their kitchen cabinets, auditors and consultants,
corporate America would have avoided some of the blunders in
the last few years. Who do you trust, and how do you get good
advice is the focus of The
Interview, with Saj-nicole Joni, author of The
My supply chain colleagues, I encourage
you to share this issue with your CEOs and CFOs, Product Management,
etc. We have articles that address issues that are not only
germane to you, but to your colleagues and management, as well.
We have basically dedicated this entire issue to the cause
of Risk Management—we think we have the scoop
on this one, with contributions from some of the brightest
minds in the industry. Our contributors include Professor Blake
Johnson from Stanford University, a team from
the General Motors Research Lab (Elkins, Kulkarni
and Tew), Dr. Thomas Olavson from HP’s
Procurement and Risk Management Group, Chuck VanDam from Agilent Technologies,
Colin Kessinger from Vivecon, as well as some
thought provoking insights—as usual—from ChainLink’s
We also will be dedicating our webinar
on April 27th to this topic with speakers from Cisco and Agilent.
We are in the middle of a research survey
for our retail readers. So if you are a supplier into the retail
channel or a retailer, you will want to be part of this important
survey. Participants, of course, will receive a complimentary
copy of the findings. To participate, CLICK
One final note, the ultimate arbiter of
fairness, Solomon, understood the issues around mitigating
risks and from where to get good advice...
Oh, put not your trust in princes!