Tag Archive: natural disasters

SIOP beyond Borders

May 6th, 2016
SIOP beyond borders

In today’s interconnected business environment amplify SIOP’s reach and potential to include all supply chain partners, even globally.

SIOP (Sales, Inventory & Operations Planning) is one method to align demand with supply while also aligning the various functions within an organization to deliver strategic objectives and maximize business value. As popular as it is becoming, I think we must challenge ourselves further with SIOP beyond borders.

Although it certainly can mean the interconnectivity in today’s end-to-end supply chain, it also can simply mean the connectivity and alignment among supply chain partners. For example, as we connect our customers with our suppliers, our IT partners with our customers’ requirements and the like, we gain a distinctive advantage in the supply chain. It is simply amazing that we can gain exponential results by connecting functions within a company and organizations in the supply chain.

Why stop there? Many of our supply chain partners could be international partners and cross borders. How can we develop an integrated planning process that not only incorporates what is rarely done in any organization but also consider global impacts? Start by expanding your mind and thinking.  Global impacts affect us every day, ranging from natural disasters to port strikes to political unrest to rules and regulations. One of the best ways to bring out the strengths of a global supply chain and leverage the collective strengths for the common good is to think about SIOP beyond borders. If you are interested in learning more about this topic and implementing it at your company, contact us to learn more about our proprietary SIOP process, 4 EXCEL, proven to gain exponential results.

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Why Care About Supply Chain Risk?

November 12th, 2013
Businesses face many hurdles—some we can control and others we cannot. How we manage risk is what determines our success.

Businesses face many hurdles—some we can control and others we cannot. How we manage risk is what determines our success.

As this topic came up frequently at the APICS 2013 conference and has affected almost every one of my clients in the last year in some manner, I thought it would be good to think about why we should care:

1. Natural disasters – Heard of any earthquakes, tornadoes, volcanoes or hurricanes?  One of the companies I worked for was one of the only buildings not destroyed in a few miles square area during a hurricane – as fortunate as it was, the facility couldn’t function for a while as no one could get in or out (unless via a helicopter).

2. Political unrest – Certainly, we hear about political unrest, danger areas, fly at your own risk zones, etc. every day.  Since there are very few companies who have been able to trace back their entire supply chain, it’s very likely something in your supply chain will be affected sooner than you think.

3. Labor unrest – Even if you are lucky enough not to be affected by political unrest or natural disaster, how likely is it you’ll avoid labor unrest as well?  Strikes occur in manufacturers, ports, transportation providers, distribution centers, etc.  Just ask the folks dependent on the LA ports during the last strike…

4. Theft – For my research for a recent webinar I led on the most common incidences of fraud that COO’s should be aware of, I gained a new appreciation for how often theft occurs inside companies.  That is nothing in comparison to what can happen in today’s extended supply chains!

5. Security – The advantage of technology is that it can be leveraged to drive business results with minimal resources and effort.  The disadvantage is that the more dependent on technology, the more risk that a disruption or outage will directly impact your business.

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