RAPIDRATINGS BLOG

Three Truths and a Supply Chain Lie

Posted by RapidRatings on November 17, 2020
 
pexels-tom-fisk-1595108 mediumYou don’t have to be an Iowan pork farmer, Canadian real estate agent, or polo shirt enthusiast to know that it’s been a strange year of strange events—expressed through strange headlines.

And while there is no shortage of listicles, memes, or ironic nicknames to describe the year we’re in—or the age we’ve entered—we should ask: has the global supply chain reached any shared conclusions?

To answer that, here are some potential headlines that could plausibly appear in blog posts or trade rags as the world makes its way through the final calendar quarter of 2020:

  • Corporate swim lanes are misleading – the ropes that separate business lines are largely surface-level only, and ultimately, the water underneath is a shared risk pool across a given organization
  • Everyone has a “risk” point of view – regardless of your role, experience, industry, or geography, most folks are looking at enterprise risk, regulatory risk, credit risk, supply chain risk—and even solvency—in new ways
  • Collaboration needs a common language – both buyers and sellers should have an objective way to communicate effectively, make their supply chains more resilient, and have more meaningful business relationships (with or without financial expertise)
  • Reactive risk management programs still work – COVID-19 is an isolated, black swan event and predictive and proactive solutions won’t be worth the investment

Challenge: sourcing or procurement teams, ask your colleagues (without any spoilers) in Credit Risk, Compliance, or Finance which of these are truths and which is a lie.

If you all reached different conclusions—please keep reading.

If you all agreed that any of the top three bullets are lies—please keep reading.

In fact, if you’re not looking at risk across business lines, not expanding beyond the day-to-day mandate of your role, not communicating transparently and accurately with your third-party (private and public) business partners, or not applying predictive capabilities that help you plan (rather than react)—then you’re probably missing some of the biggest (yet-to-be-published) headlines that 2020 has to offer à la resiliency, solvency, and a better way of doing business, globally.

Earlier this month, Gartner’s James Lisica, a senior research director for global supply chain and logistics, noted, “Risk is now part of supply chain and must be embraced...investing in technology, particularly new and emerging technologies, can help drive innovation and improve competitive advantage."[1]

He was speaking at the Supply Chain Symposium/Xpo hosted by Gartner—as reported by Sue Doerfler from the Institute for Supply Management—where he detailed a number of opportunities for chief supply chain officers (CSCOs) and enterprises in general.

(Note: RapidRatings was previously recognized by Gartner in four Industry reports—accompanying the Magic Quadrant for Manufacturing Execution Systems—including the Aerospace and Defense, Automotive, Food and Beverage, and Electronics/Semiconductor contexts.)

In her coverage, Sue identifies Lisica’s holistic approach to supply chain risk—emphasizing:

  • Data visibility to drive decision-making (translation: a common, data-based language)
  • Performance metrics to achieve corporate goals (translation: cross-team & cross-organizational collaboration)
  • Ability to respond to disruption (translation: predictive power)

To learn more about the foundational nature of financial health, how organizations can breakdown risk barriers, advance capabilities beyond a reactive state, and how a common language based in data can help you build stronger (and more meaningful) relationships with your public and private business partners—request a demo.

And, ultimately, become the author of your own headlines.



[1] https://www.ismworld.org/supply-management-news-and-reports/news-publications/inside-supply-management-magazine/blog/2020-11/driving-competitive-advantage-in-the-supply-chain/?utm_campaign=Publications&utm_medium=email&_hsmi=99502660&_hsenc=p2ANqtz-8TpM2nB3QCQgORDPYQvACZawmZvUhMGu_8bMq9Zv0FQjuS27d7m_WY5lR5mPoXDvUJyRD1hbG21I2SCP1VQtQI3fTKxA&utm_content=99502660&utm_source=hs_email

  

Topics: Supplier Risk Management, Risk Assessment