Reason Magazin 2014Q3 Seite 14

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14 Reason ISSUE 3 2014 theLATEST Talking Books In Supply Chain Risk author John Manners Bell analyzes the wide range of external threats to a supply chain including environmental geopoliti cal economic and technological risks He attributes these evolving risks to corporate practices specifically the desire to gain cost advantages These cost cutting measures include offshore production and heavy reli ance on low cost vendors suppliers subcontractors and sub subcontractors With the advent of recent events such as the Japan earthquake and tsunami the volcanic eruptions in Ice land and the Thailand floods corporations are beginning to take action Supply Chain Risk provides executives with an overview of both internal and external risks while helping them understand how to engineer resil ience into supply chains The Swiss cheese operating model Manners Bell dubs one type of specifically disruptive supply chain risk the Swiss cheese model of accident causation More often than not the Swiss cheese dis ruption involves numerous disparate factors that are sys temic in nature On the corporate side management may not properly oversee its cost driven outsourced produc tion strategy The supplier s strategy became a tightly circumscribed no room for error cost reduction trap particularly because logistics and purchasing managers concentrated specifically on limiting costs without pay ing attention to quality The author contends that if these factors are stacked together like slices of cheese the holes line up and the result is late delivery of a critical component and a subsequent loss for the manufacturer Due diligence Employing lean manufacturing and cost management measures in the supply chain overextends modern sup ply chains and increases their frailty When supply chain managers attempt to cut costs and maximize profits they can underestimate potential risks Most firms now out source production to low cost vendors worldwide This extreme attenuation of the supply chain invites disrup tions The trade off of internal and external risks is not a zero sum game John Manners Bell discusses his new work updated theories on supply chain risk MANNERS BELL is the chair of the logistics and supply chain global agenda council of the World Economic Forum Many companies pretend that the risks don t exist he says