Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management
DescriptionOver the past decade organizations have faced relentless customer demand for better value at less cost, individual customization, greater choice, faster delivery, higher quality, exceptional service, and more recently – increased environmental and social consciousness. The organization’s weapon of choice to address this increasing demand has been the supply chain. However, as the supply chain footprint changed (e.g. outsourcing, off-shoring and customer/vendor empowerment) so did the organization’s exposure to uncertainty. Organizations were taken by surprise since this exposure was unanticipated, complex and beyond their ability to manage. As customers become more demanding and change occurs at an even greater pace, supply chain risk continues to propagate like a parasite. Organizations and societies are at much greater risk of systemic failure because of the massive interdependency throughout global supply chains. The priority now is two-fold; play catch-up and address these massive gaps while deploying more intelligent and integrated strategies (i.e. social aware, instinctive, dynamic and predictive) for dealing with continuous change.
Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management uses analogies and dozens of case histories to describe the risk parasite that infects all supply chains while revealing methods to neutralize that parasite. The book addresses the questions: What are the ""single points of failure""? How exposed are customers, investors, other stakeholders and ultimately the organization? What is the measurable impact (i.e. brand, financial, strategic, and non-compliance)? Who establishes the ""risk paradigm""? How does the organization efficiently and effectively allocate precious resources - time, people, management attention, and capital? How is success measured? This book is both technically powerful and effectively realistic, based on today's complex global economy.
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Introduction Getting to the Truth.
Chapter 1 The Laws of the Laws.
Laws of the Laws.
Risk Management Defined.
Law of the Laws #1: Everyone Without Exception, Is Part of a Supply Chain.
Law of the Laws # 2: No Risk Strategy is a Substitute for Bad Decisions and a Lack of Risk Consciousness.
Law of the Laws # 3: It's All in the Details.
Law of the Laws # 4: People Always Operate from Self-Interest.
Indirect and Secondary Impacts.
What Can you Conclude?
Chapter 2 Law #1: If You Don't Manage and Lead Change, You Have to Surrender to it.
The Risk Wake-Up Call-Planned Change, Unplanned Consequences.
We Can't Change the Past, but … Can We Change the Future?
Can You See the Icebergs Ahead?
Chapter 3 Law #2: The Paradigm should Destroy the Parasite: Begin by Defining the Paradigm, Not by Ffighting the Parasite.
The Paradigm in Action.
Why Does the Organization Need to Identify a Supply Chain Risk Paradigm?
Beware! The Paradigm Can Shift Without Notice.
If the Shoe Fits.
Chapter 4 Law #3: Manage Your Business DNA in a Petri Dish of Evolving Risk.
Expanding the Risk Awareness Universe.
Know Your Business – Know Your Surroundings.
The Keys to your Risk Kingdom.
Your Operation's Complete Footprint.
Your Action Plan.
Chapter 5 Law #4: In Supply Chain Risk Management Demand Trumps Supply.
Building Your Demand-Based Strategy.
Market and Client Factors to Consider.
Chapter 6 Law #5: Never Set Up Your Suppliers for Failure.
Supply Chain Risk Management Program.
Sourcing Strategies that Create More Risk, Not Less.
Trust but Verify.
Chapter 7 Law #6: Managing Production Risk is a Dirty Job Focus on Managing the Endless Risk of Manufactured Weakest Links.
Going Global With the Production of Risk.
A New Collaborative Effort.
Why is Production So Critical?
Part Two of the Double Whammy: Labor.
Chapter 8 Law #7: The Logistics Risk Management Rule: Managing the Parts Does Not Equal Managing the Whole.
What is Logistics Risk?
Cargo and Warehouse Theft.
The Piracy Risk.
What's at Risk?
Single Points of Failure and Aggregate Risk.
Supply Chains Don't Survive on Product Flows Alone; Information Flows Are Essential.
In the End it's all About the Priorities and Economics.
Chapter 9 Law #8: If Supply Chain Risk Management Isn't Part of the Solution It Will then Become the Problem.
Now What Do I Do?
Enter the Risk Intelligent Supply Chain.
Economic Change – A Catalyst for Redefining Resiliency Management.
At Time of Disruption.
What is Risk Mitigation?
Chapter 10 Law #9: Financing: The Best policy is Knowing What's in Your Policy.
Insurance and its Role in Supply Chain Risk Management.
Background on Insurance in the Supply Chain Risk Area.
Current Insurance Solutions and Their Limitations.
Introducing Supply Chain Insurance: Approach and Challenges.
Corporate Customer Benefits Arising from Supply Chain Insurance.
What Does the Future Hold?
A View From the Insurer's Side.
Chapter 11 Law #10: Manage the Risk as You Manage Your Own Your Supply Chains are All Interdependent but Unique.
Questioning Old Assumptions.
Personal Laws of the Laws.