Elements to assess supply disruption
A simple diagnostic test can assess whether a company is adequately prepared for supply-chain disruptions or mitigating reputational
risk. Key questions to consider are:
- Does a company have a comprehensive supply-chain risk-management program in place?
- Does the supply-chain risk-management program have well-documented policies and procedures in place that adequately protect
the company against the types of issues that are generating enormous news today (e.g., supply-chain disruptions such as geopolitical
instability, natural disasters, financial collapse, inconsistent quality, contamination, and counterfeiting; corporate responsibility
such as human rights violations and environmental concerns; and employee responsibility such as fraudulent activities, discrimination,
and harassment)?
- Are employees trained and certified in their understanding of these policies on an annual basis?
- Is there a systematic process and data-management repository in place to ensure rapid and proactive response to unexpected
events?
- Are corporate responsibility and supply-chain risk-management a top priority among the company's senior executives?
The answers to these questions provide insight into whether a company is adequately prepared to mitigate risk in its supply-chain
activities.
Gregg Brandyberry is a partner of Wildfire Commerce, senior advisor of AT Kearney procurement and analytic solutions, and former vice-president
of procurement, global systems, and operations for GlaxoSmithKline, 629 Overhill Road, Ardmore, PA 19003, tel. 215.327.5739,
greggbrandyberry@wildfirecommerce.com
References
1. D. Gilmore, Supply Chain Digest, May 7, 2009.
2. FDA, Information on Heparin (Rockville, MD),
http://www.fda.gov/Drugs/DrugSafety/PostmarketDrugSafetyInformationforPatientsandProviders/ucm112597.htm, accessed June 30, 2010.
3. "The 2010 Global 100 List," Corporate Knights,
http://www.global100.org/annual-reviews/2010-global-100-list.html, accessed July 15, 2010.
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