The beginning of each new year is a time for everyone to make their New Year's resolutions.
Manufacturing companies today are operating in a new world where constant changes in geopolitics, safety and cyberthreats have made designing and managing a supply chain more complicated and even more important than before.There is more pressure than ever to make your company's supply chain smarter, more efficient and less costly to the bottom line. Unexpected risks can wreak havoc on a company's operations and the number of potential hazards is growing every year. Potential supply chain risks that should be on every company's radar for 2020.
Fires or explosions
Plant or facility fires or explosions can significantly affect a company's operational capabilities as well as the safety of it's employees. Unexpected events happen more often than you think, so it is best to develop a risk response plan. A vital preventative measure is to identify and assess the risks with frequent walk-arounds and hazard inspections.
Hurricanes, tornadoes, wildfires, tsunamis and earthquakes can create major supply chain disruptions. Though complete avoidance may be impossible, having backup sources of supply, using good data backup strategies, obtaining the right insurance coverage and having a disaster recovery plan in place can all help companies stay in business during and after a disaster.
Cybersecurity in supply chain cannot be viewed as an IT problem only. Cyber supply chain risks affect sourcing, vendor management, supply chain continuity and quality, transportation security and many other functions. These strategic events are fairly low in frequency, but when they do happen they are huge. Not to mention, you cannot control security measures being taken by your supply chain partners. Make it a priority to conduct risk assessments that include both supplier and customers, all in the name of mitigating the impact of an attack.
Knowing the risks in global freight management is key to a strong supply chain strategy. Failure to understand the risks of global freight is putting your organization on the brink of profit losses and disruptions. Port strikes, driver shortages and international regulations are going to happen- it's just a matter of when and how much of an impact you allow it to have on your business.
There is a lot of government impact on the supply base right now. Tariffs, Brexit, border control and currency fluctuations are just a handful of the issues affecting our world's supply chains right now. Political instability is an enormous threat to the success of any company operating in the global supply chain area. Organizations with global sourcing needs must understand the potential impact political instability can have on productivity and quality and need to create strategies to mitigate risk.
The supply chain risk environment is dynamic and continually evolving. Each year brings new challenges for companies, with different threats, unexpected events, and unpredictable consequences. At Reflective Concepts, we offer our Plan B as a risk mitigation option to help you evolve your strategy and ultimately to help protect your bottom line.
Give us a call at 866-276-6242 today.