MIS2101 Section 702 – Amy Lavin – Spring 2014

Disaster Looms: Why Today’s Global Supply Chains Are At Risk

http://www.forbes.com/sites/robertbowman/2014/04/01/disaster-looms-why-todays-global-supply-chains-are-at-risk/

Companies today have to take a better look at their supply chain measurements to ensure the safety of their products and facilities, before the  end product is received by the consumer. It is unethical and irresponsible for companies to not have a proper risk-management plan in place when a faulty product is made and has caused harmed to a human being. Today, more and more companies are trying to cut costs and increase purchasing power by reducing suppliers to a bare minimum. This strategy that companies are using in an attempt to increase revenue can hurt a company if they were not to have access to an alternative vendor, if a disaster were to occur with a companies original supplier. “Companies have spent untold amounts of money on ERP systems to manage financials and other basic functions, but they’re less advanced in acquiring systems that enable end-to-end visibility and collaboration among all supply chain partners.” Companies can lose billions of dollars from a supply chain disaster and harm the reputation of a company, which can lead to a long-term decrease in revenue.

1. If you were the risk manager at a large company, would one of your main focuses for the company be on the  supply chain process? Why?

2. Do you think it is irresponsible and potentially harmful to a company in the long run to reduce their supply chain and to not have the proper safety measures in place for the factories. Why or why not?

3. What is an example of one company producing a faulty product and what was their immediate response to producing that faulty product? Did they have a proper supply chain risk management plan in place?

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