Mitigating the risk of Supply-Chain calamity (Strategy Focus)

This Market Focus looks at the strategies being put in place by manufacturers to mitigate risk within their supply-chains. It draws on the responses of 150 manufacturing companies from around the world.



Report Highlights
What manufacturers need to do and indeed some are starting to do this already is focus on those risks that can be quantifiable and linked to both operational and financial processes. At the same time, it makes sense for manufacturers to start working with those risks that it feels are most central to its core competency and efficient operation.


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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Improving the visibility of risk is critically important for manufacturers 2
Assessing current risk builds upon supply-chain risk visibility 3
Manufacturers are looking to develop strong supply-chain reaction capabilities 4
Developing contingencies is critical to an agile supply-chain risk management strategy 4
Scenario building and modeling is a complex form of contingency planning that can yield strong benefits 5
Plan execution should form a core component of contingency strategies 6
KPIs and reporting form the backbone of effective supply-chain risk management 6
KPIs or KRIs will need to be formulated to ensure continuous supply-chain risk management 6
Reporting on KRIs and other supply-chain risk dynamics is growing in popularity 7
Linking financial metrics will be key to effective management of supply-chain risk 8
Technology requirements for supply-chain risk management are evolving 8
Supply-chain risk management solutions should integrate with both suppliers and customers 9
Financial aspects of supply-chain risk management solutions will need to interact with ERP 9
Manufacturing companies still have numerous disjointed systems, hampering risk management efforts 9
APPENDIX 10
Definitions 10
Methodology 10
Further reading 10
Ask the analyst 10
Datamonitor consulting 11
Disclaimer 11

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Figure 1: Timeline for focus on supply-chain risk visibility for 150 manufacturers 2
Figure 2: Timeline for focus on supply-chain risk assessment for 150 manufacturers 3
Figure 3: Timeline for focus on supply-chain risk contingency planning for 150 manufacturers 4
Figure 4: Timeline for focus on supply-chain risk scenario modeling for 150 manufacturers 5
Figure 5: Timeline for focus on supply-chain key risk indicators for 150 manufacturers 7
Figure 6: Timeline for focus on supply-chain risk reporting for 150 manufacturers 8

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