In episode 8 of the podcast, Adrian dials in with Renaud to discuss supply chain risk, how to manage it, and some of the tools that can really help make a difference for importers.
Section 1: Supply chain risk, Black swan events, & VUCA (Start to 25:00)
- What is supply chain risk
- Real-life instances where this has negatively affected businesses
- Black swan (unpredictable) events
- VUCA (Volatility, uncertainty, complexity and ambiguity) and some examples
- Performing due diligence on suppliers (Sofeast can help with this)
We follow the topics of this blog post: Supply Chain Risk Management, Part 1: What are VUCA and Black Swans?
Section 2: The Business Continuity Plan (25:00 to 37:00)
- Explaining what a BCP is and its benefits
- The dangers of 'swimming naked'
- How to build and complete the plan (including Issues/Risk dimensions/Action plan)
- The role of planning in an organisation that wants to take action to reduce risks
This section focuses on the topic of this blog post: Supply Chain Risk Management, Part 2: The Business Continuity Plan
As promised, you can get Renaud's BCP template and configure it for your own needs should you wish to undertake your risk analysis for your own business here: https://bit.ly/BCPTemplate
Section 3: The Supply Chain KPI Scorecard (37:00 to End)
- Why most purchasers pay too much attention to the price of what they buy but fail to take risks into account such as too much complexity, unreliable suppliers, etc
- Examples of the negative consequences of focusing primarily on price
- How completing a supply chain KPI scorecard can help reduce risks and the key KPIs to include (such as quality, cost, on-time delivery, and certain risks, too)
- Summing up and closing remarks from Renaud
This section draws on this blog post: Supply Chain Risk Management, Part 3: A Purchaser Supply Chain KPI Scorecard’s Benefits
If you have any questions about the topics discussed in this episode you can get in touch with us and we'll do our best to answer them and also remember to subscribe to Renaud's blog at QualityInspection.org and visit Sofeast if you need assistance on the ground in China or SE Asia with your supply chain, quality, product development, and much, much more.