Benjamin Franklin said “By failing to prepare, you are preparing to fail.” He could have been talking to supply chain managers. Whatever is done today dictates how well the organization can weather unexpected occurrences, whether natural disaster or man-made shifts, that can impact the supply chain.
In fact, the only thing we can prepare for is the reality that disruptions will happen. And yet, many companies never pull together and test a detailed plan for responding quickly and effectively to unexpected upheavals. The list of potential hiccups is immense: port closures, severe weather, changes in legislation, natural disasters, economic instability, cyber-attacks, terrorism, and more.
Consider just one example that recently hit the headlines: the battery explosions and fires that impacted Samsung’s Galaxy Note 7 Smartphone. The company ended up recalling all of the devices. “The Note 7 represents the premium smartphone model offering in the Samsung product lineup and now upwards of 2.5 million of these devices have been recalled across 10 geographic markets,” said Bob Ferrari, of the Ferrari Consulting and Research Group.
Meanwhile, OEM Apple struggled to deliver enough of its iPhone 7s, Air Pod wireless earbuds, and Apple Watches into the hands of the customer, which had a clear impact on the company’s bottom line. Although the company continues to have strong sales, pundits suggest that these hiccups did hamper even better results.
Take a look at the infographic below from Kinaxis to see some advice and strategies on preparing to succeed in the face of supply chain difficulties. Let us know in the comments section about how your company prepares.