Supply Chain Monitoring Systems Analyze Global Risks and Opportunities

       Birds-Eye View of Global Supply Chain Risks and Opportunities

                                      Monitoring Systems Offer Supply Chain Stability

As the supply chain continues its march towards globalization, supply chain managers are feeling the pressure. Stability is what every supply chain manager strives for and yet global trade is anything but stable. 

There are many factors in the global supply chain that can suddenly go awry. To function effectively in a global economy, real-time information is the supply chain manager’s best friend.

For example, real-time monitoring can provide up-to-the minute:

• Currency valuations such as the depreciation of the rupee in India and how it may affect imports and exports from that country.

• Information on how best to move goods from countries with political unrest such as Egypt and Brazil.

• Up-to-date information on the emerging free-trade zone being established in China.

• The growth of green-tech developments in Malaysia.

• Emerging IT and BPO near-shore prospects in Latin America countries that share time zone and geographic proximity to North American countries.

 

Avoid Problems & Act on Opportunities

Real-time monitoring of the supply chain allows managers to avoid problems before they arise rather than solve them after the fact. These preemptive actions create more stability in the supply chain by making unknown disruptions known before they cause problems. Real-time monitoring and analytical tools improve competitiveness and enhance customer service by reducing supply chain uncertainty.

Real-time monitoring can assist in managing supply chain risk factors by:

• Utilizing historical and current data to create predictive behavioral trends.
• Issuing real-time alerts on the latest news and developments from around the world and providing early-warning signals of potential problems.
• Leveraging real-time information and taking immediate action to avoid costly disruptions.
• Reporting on emerging opportunities in the global marketplace.

 

5 Benefits of Real-Time Monitoring of Global Supply Chain Risk

1/ Real-time monitoring allows decision makers to view the global supply chain in its entirety rather than its individual components such as procurement, logistics, distribution or manufacturing. With this global outlook, decision makers can gain insights into how strategic changes can affect the supply chain in whole and in part.

2/ Provides both ordinary and extraordinary supply chain risk. Everyone gets into habitual modes of operation based on experience. Effective supply chain managers know the obvious or frequently-occurring risks and manage them as a matter of course. But it’s the less obvious risks that often have the most negative impact on operations and profit. Real-time monitoring provides an all-encompassing view of the global supply chain so that decision makers can weigh all risk factors and choose the best strategic response.

3/ Provides vital information that can be used in operational strategic planning. A thorough supply chain monitoring system evaluates multiple risk types and hundreds of related criteria to provide a detailed projection of risk factors at the global, local, and supplier levels.

4/ Reveals embedded risk in current operating models. All operating models contain a certain amount of risk and many of them are known and acceptable. Others can be overlooked due to familiarity with the operating model. Supply chain monitoring systems often reveal embedded risks that management never knew existed.

5/ Provides financial modeling capability for the supply chain. State-of-the-art supply chain modeling tools can be utilized to assess the financial impact of supply chain volatility. Product and service demand volatility become visible and predicts the impact of entering new markets or the launch of new products on long-term production capabilities. These tools also assess the cost of operational disruptions and equalize the distribution of risk involving the company, its customers, 3PL providers and joint venture partners.

Supply chain monitoring systems offer:

> Real-time 360-degree visibility for all facets of the supply chain.

> The ability to manage ordering, warehousing and transportation functions performed by 3PL providers.

> Customer profiles, lot tracking and order fulfillment.

> Manufacturer cost tracking, supplier efficiency, and customer demands.

> Inventory transparency

> 24/7 web-based cloud interface system provides access to risk profiles, knowledge library and event alerts in a user-friendly format.

> Data accumulation from multiple sources including public, private and semi-private data networks to ensure timeliness and quality.

> Ongoing alerts of escalating risks or increased instability that are received in advance of supply chain disruption as well as provide notifications of opportunities.

> Oversight support for risk management, regulatory issues, due diligence and examines global locations and 3PL providers.

Manage Supply Chain Risk 

Risk ratings are essential information that allows decision makers to evaluate specific strategies by location, contract negotiations, and the management of day-to-day operations. Advanced knowledge of risk trends and risk management recommendations help to plan for future events that may have an impact on the overall operation.

Companies that employ or utilize a mediocre risk management system become vulnerable to the many unforeseen events that can transpire around the world. Any breakdown in the supply chain can have a negative impact not only in terms of customer dissatisfaction but can be a serious financial drain even in the most stable companies. 

The benefit of early real-time monitoring can give a company guidance on global supply chain trends risk assessments and they can rely on this data to make crucial decisions and to explore greater opportunities when negotiating contract re-structuring, renewals and pricing.

Author Bio

Russell Richer has 15 years experience as a B2B copywriter. A former 17-year corporate accountant, I specialize in promoting B2B products, software, SaaS, and services related to sustainable manufacturing, industrial contracting, supply chain, environmental health & safety, and business process automation. Contact Russ @ richer-communications.com.