Global supply chains, key factors for consideration
With new risks presenting themselves constantly what should companies bear in mind when it comes to their supply chains?
We ask Greg Schlegel, Adjunct Professor, ERM, Enterprise Risk Management, Villanova University, EMBA.
How can businesses prepare their organisations to better deal with challenging times?
They can, the question is will they? What we see is this…Humans are pretty much procrastinators by nature.
With that said, most businesses do NOT embrace or embark on a strategic risk journey UNTIL they experience a risk event. If they do it’s all hands on deck 24/7, in an attempt to survive the event. IF they do survive the event a lot of companies will go back to business as usual. Many companies do not survive a moderate-severe global risk event like the COVID-19 virus.
It’s a matter of culture; company culture drives the business environment. Yes, like the 250 exemplar Supply Chain Risk Management (SCRM) companies that we monitor who are better prepared and more responsive to supply chain events fare much better, especially in a pandemic such as the Corona virus.
The worst case scenario is – the company goes out of business! With large, catastrophic weather events, it takes companies about 30+ weeks to recover and about 20-30% of companies impacted by a CAT weather event can’t last 30 weeks without sales and therefore go out of business between 12-24 months after the event.
Find out more about our new Supply Chain Risk Management Certificate to ensure you are up-to-date with current principles and practices, protect your organisation and enhance your own career prospects and earning potential.