Page 9 - Logistics News June 2019

Thought Leadership
must also defi ne how the fi rm categorises and
prioritises risk. To be eff ective, SCRM will need
to prioritise the largest vulnerabilities across
every link in the supply chain from raw material
to warrantied returns. For a company that is
off ensively minded, that prioritisation process
may also consider what risks competitors may
be overlooking that can then be seized upon to
gain a competitive advantage.
Execution approach: There are many models
that companies can use to guide their risk
management response eff orts. These may
range from the ISO 31000 standard to a model
developed internally for a specifi c fi rm. The
important thing is to choose one that begins
with risk analysis/prioritisation, enables rapid
response and involves continual communication.
Without any one of the parts of this trifecta, a
risk response model will fail.
Personnel training and development: The
supply chain staff are the fi rm’s eyes and ears in
the fi eld. The success of an SCRM plan depends
on their ability to recognise a disruption, predict
its impact and infer the market implications.
Training and development on these skills are
essential because these actions must be second
nature to them.
Forcing the fumble
Some sports teams and organisations go
beyond preparing for the fumble to making it
more likely for a fumble to happen. Think about
June 2019 | Logistics News
a forecheck in hockey, which is a defensive play
made in the off ensive zone with the objective
of applying pressure to the opposing team
to regain control of the puck. An aggressive
forecheck in hockey creates a lot of turnover
opportunities close to the opponent’s goal. In
many of the world’s best defences, creating
chances for disruptions is a vital piece of
strategy.
It’s important to note that there’s a diff erence
between taking advantage of (or even forcing)
your competitors’ fumbles and engaging in
price gouging or predatory practices. Predatory
practices are illegal and unethical, and generally
require acts of fraud, misrepresentation or
oppressive practices committed by businesses
against consumers or other businesses. Planning
for a disruption and investing in products/
services that could be benefi cial should a
disruption occur is nowhere near the defi nition
of unfair practices. Because of the investments
made, based on sound planning, prepared
companies are able to off er products at market
value. Unprepared competitors, however, are
typically in a predicament that requires them to
price at a premium.
No team wants to drop the ball. But every
team does. It’s the team that prepares for those
disruptions and then executes its plan well that
wins. By preparing for the fumble, fi rms can turn
their overhead costs of continuing operations
into a pre-sales investment. •
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