A recent Wall Street Journal article, Reinforcing the Supply Chain , discusses the global supply challenges companies faced last year. Spotlighting the natural disasters and political upheavals that marked 2011, the WSJ identifies some of the business sustainability vulnerabilities even the largest multinational corporations can face when caught unaware. However, as the author states: awareness has not necessarily led to action.Our sustainability consulting prescribes to a strategic approach to sustainable supply chain management. Expanding upon our own post, Continued Evolution of Sustainable Category Management in 2012, we explore the advantages of focused and integrated business processes with key suppliers as stabilizing and risk mitigating strategy.
“Leading procurement organizations invest in upfront protection for critical supply in addition to their risk monitoring and response efforts. When determining what supply to protect, first consider where your biggest vulnerabilities are (i.e., what supply puts the most revenue at risk) and then review your suppliers to determine which ones are most closely linked to those supplies.” -Procurement Strategy Council
Moving forward into 2012, our business sustainability consulting prescribes to the idea that the next generation of ‘sustainable’ category management will continue to emerge in the New Year. Focused on a new level of responsibility across all supply chain activities, efforts in 2012 will drive deeper into category value by addressing more pointed supply questions.
- What is your commercial strategy?
- Do you have supplier/contract management plans?
- How does your company approach demand and demand management planning?
- Is there a communication and change management process in place?
- How do you view continuous supply chain improvement?
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