Use analytics to cut supply chain risks

Will your supply chain be able to weather a natural disaster? Can it withstand a massive product recall? A recent survey of nearly 600 global manufacturing and retail executives about the outcomes of supply chain risks re-emphasised a troubling picture, says a Deloitte report. Forty-eight per cent reported an increase in the frequency of supply chain risk events. Not only are these risks becoming more frequent, they are also becoming more costly, according to 53 per cent of the respondents. The three most costly outcomes of supply chain risk events are the erosion of margins, shifts in demand and disruptions in the flow of physical products. However, building a resilient supply chain is easier said than done. While 71 per cent of executives consider supply chain risk an important part of strategic decision-making, only 30 to 40 per cent of their companies have effectively implemented analytics and data visualisation tools within their supply chain risk management programmes. The Deloitte report says analytics can strengthen a company's ability to track and monitor supply chain events and its ability to adapt to disruptions without increasing its operational costs.