STORIESRouting tosupply chainresilienceThe power of proactiverisk management
Call for changeSuperchargingsupply and profitsFew of us stop to think about the brainsbeneath our smart devices, cars andappliances. This microchip technology comesfrom third-party suppliers and is essential tomanufacturing today’s products—frompacemakers to PCs. For this reason, whenfaced with an unexpected microchipshortage, technology suppliers moved tomake supply chain risk management andresiliency a priority.This was especially true for one global technologysupplier. The abrupt stop-and-go for vehicledemand caused by the pandemic led thecompany to discover that, like many others in theindustry, its supply chain lacked the muscle tomeet the moment.Copyright 2022 Accenture. All rights reservedIn 2020, the pandemic understandably put thebrakes on global automotive production. At thesame time, the demand for electronic at-homeentertainment (TVs, gaming consoles, computers,etc.) grew—and microchip suppliers shifted theirsupply to electronics. As a result, when vehicledemand rebounded, a microchip shortageeffectively stalled the global auto industry, costingit an estimated 210 billion in lost revenue.1Without the chips, the technology companystruggled to meet renewed vehicle demand,putting both its profit margin and marketvaluation at risk. Given the magnitude of thisproblem, company leaders were determined tofind a solution and brought in Accenture to help.1 Shortages Related to Semiconductors to Cost the Auto Industry 210 Billion In Revenues This Year, SaysNew Alixpartners Forecast, “AlixPartners,” 2021
When tech meets human ingenuityThe muscle tomitigate riskThe joint team first performed a maturityassessment, examining current supplychain risk management practices andcapabilities. It identified an opportunity tomove from the company’s basic, reactivecapabilities to more proactive riskmanagement using advancedtechnologies and analytics. This wouldallow the company to build the muscleneeded for long-term resilience across itsentire value chain—not just for microchipsupply.The team developed an advanced “heatmap” to identify high risk suppliers andcomponents and recommend mitigatingCopyright 2022 Accenture. All rights reservedactions. The heat map analyzed over onethousand parts—including the smallestcomponents—that could delay a finalproduct and put the company’s revenue atrisk if they suddenly became unavailable.The heat map looked at 15 different riskdimensions, such as risk contribution,supplier relationships, deliveryperformance and availability of alternativesources of supply. To perform the analysisand understand revenue impacts, the teamleveraged company data and created a“supply chain digital twin.”
When tech meets human ingenuityThe digital twin is a virtual replica of thecompany’s global supply chain built using theAccenture Intelligent Supply Chain Platformand hosted on Microsoft Azure. It’s highlydetailed, providing a virtual map of everyfactory, warehouse, material and componentsupplier—from Tier 1 to Tier 5—in the supplychain, along with visibility intointerdependencies. The digital twin allows thecompany to visualize, understand and analyzevarious supply chain challenges, such asphysical flow complexity, supplierconcentrations, supply bottlenecks andrevenue at risk. For example, when Germanysuffered catastrophic flooding in 2021, thedigital twin was able to identify the impact onthe company’s supply chain within an hour.Finally, Accenture performed the innovativesupply chain resilience stress test, leveragingjoint research with the MassachusettsCopyright 2022 Accenture. All rights reservedInstitute of Technology. The stress testsubjects the digital twin to pre-defined,disruptive scenarios—such as anenvironmental disaster, port congestion or asupply shortage—and calculates a Time toSurvive (TTS) and Time to Recover (TTR). Eachscenario receives a resiliency score. Forexample, if you lose 40% of your normalrevenue, your resiliency score is 60%. At theend of the stress test, scenario resiliencyscores are combined to identify the overallresilience of the supply chain.The success of the stress test proved theefficacy of the digital twin methodology.From there, Accenture worked with thecompany to transfer the knowledge to itsinternal Supply Chain Resilience team. Thislaid the groundwork for subsequent strategicand operational actions to reduce supplychain vulnerabilities.
A valuable differenceFrom reactiveto resilientIn just six months, Accenture and thecompany turned a significant global challengeinto an opportunity, building the muscle andcreating a foundation for a more resilient,relevant and sustainable supply chain.the digital twin and its visualization and analyticstools, the company can respond in hours ratherthan weeks to disruptions. This has contributed toreducing the company’s revenue at risk by severalhundred million dollars.The advanced supply chain capabilities will helpthe company focus on proactive supply chainmanagement. In combination, the maturityassessment, heat map, digital twin and stress testwere able to produce several targeted riskmitigation actions—sometimes down to thecomponent or part number—across businessfunctions. The team was able to model the impactof these actions by adding them to the digital twinand performing another stress test.These advanced capabilities also position thecompany for increased commercial success. Itsongoing efforts to build supply chain resiliencewill help prove to its global customers that it iswell prepared to navigate future disruptions.The company will also be able to efficientlymitigate ongoing supply chain challenges. WithCopyright 2022 Accenture. All rights reservedWith Accenture’s help, the company can nowidentify and start responding in “almost real time”to supply chain changes and support growth.Even better, it has the technology, talent andcapabilities to continue building an advancedsupply chain with the muscle to withstanddisruptions from many angles.
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Accenture reports how a microchip company created a more resilient and sustainable supply chain to respond in almost real-time to disruptions. Read more. Keywords: sustainable supply chain, supply chain resilience, advanced supply chain, maturity assessment, proactive risk management, supply chain digital twin, supply chain stress test Created Date
supply chain resilience. One of those strategic enablers is cyber posture. Making Cybersecurity-Supply Chain Risk Management (C-SCRM) a priority was identified as key to enhancing supply chain cyber resilience. Cybersecurity-Supply Chain Risk Management (C-SCRM) efforts manage supply chain risk by identifying susceptibilities and vulnerabilities to
From Risk to Resilience: Learning to deal with disruption. MIT Sloan Management Review, 56(2), 79-86. Strategic supply chain resilience The supply chain's ability to bounce forward and adapt to a new normal The supply chain's ability to bounce back and recover to a normal state of affairs Operational supply chain resilience
SUPPLY CHAIN RISK MANAGEMENT 2020. PAT TARVER - CPIM,CSCP,CLTD. BUILDING RESILIENCE TO PREVENT SUPPLY CHAIN DISRUPTION . MARCH 6, 2020. Michelle Wright - CSCP. APICS North Texas Chapter. . Preparing for Supply Chain Disruption with RESILIENCE! Closing .
1. Share information and knowledge to promote supply chain resilience. 2. Promote disaster risk management and hazard mapping to better understand potential risks to supply chain resilience. 3. Support planning and business continuity management to improve global supply chain resilience. 4. Promote best practice policy, regulations, and .
Supply chain management 184.108.40.206. Supply chain processes: the integrated supply chain point of view To describe supply chains from a process point of view, we refer to the supply chain operations reference (SCOR) model. SCOR is a cross-industry standard for supply chain management and has been developed and endorsed by the supply-chain council .
Qlik for supply chain: forecasting and planning 6 Qlik for supply chain: sourcing and supplier performance 8 Qlik for supply chain: production insights 10 Qlik for supply chain: warehousing and distribution 12 Qlik for supply chain: transportation, storage and logistics 14 Qlik for supply chain: fleet management 16
Introduction: Climate change and supply chain risk 10 Investors will pay more attention to supply chain GHG emissions 9 Supply chain disruptions will occur in more places 13 Bridging strategies . during the pandemic about the supply chain resilience that we need in the light of climate change risks. Just like the impacts experienced during .
the youth volunteers who participate in the annual Diocesan Pilgrimage to Lourdes. I have been very impressed with their energy, good humour and spirit of service towards those on the pilgrimage who have serious health issues. The young, gathered from around the diocese show a great sense of caring and goodwill to those entrusted to their care over the days of the pilgrimage. Young people have .