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Fighting the Supply Chain Crisis

Food4Thoughts

Not only after the Covid-19 pandemic and recent natural hazardous events, creating resilient supply chains is a common task. For most organizations, however, this is likely to be a challenge given the analytical and practical problems to be solved.

 

Even when appropriate measures have been identified, many struggle to balance resilience measures like safety stock and multi-sourcing with cost and competitiveness.

Increasingly rapid, unpredictable, and unprecedented changes

The world is more interconnected than ever, from supply chains to the flow of information.

 

But in a world where these ties are under threat and frequently cut abruptly, companies need to look beyond short-term performance and efficiency. They must be able not only to withstand unpredictable threats, and to emerge even stronger and stay competitive in the long run – they need to be resilient.

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Does it have to be either resilient and flexible or efficient and competitive?

Most industries are exposed to unpredictable changes at increasing pace, but many companies still focus on short-term profits. Consciously neglecting adequate risk management, they put fragile supply chain networks at risk, such as the current semiconductor crisis resulting in more than 200 billion dollars loss of revenue in 2021.

 

Most companies lack

  • Sufficient supply chain transparency
  • Comprehensively managed resilience strategies and measures

The data short comings along the supply chain are divers

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What are the adequate measures to achieve sufficient resilience for supply chain?

Companies need to understand:

  • What is the heat level of the supply chain network, i. e. maturity, risk exposure, vulnerability?
  • What measures are effective and efficient for additional flexibility, mitigation?
  • What preventive measures are mandatory?

Disruptions vary based on their severity, frequency, and lead time – and they occur with regularity

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How to create a resilient supply chain

Our five-step approach balances resilient supply chains and cost competitiveness:

  1. Assess your individual heat level for a) uncontrollable and b) manageable risks
  2. Define a catalogue of mitigation actions, both reactive and preventive
  3. develop company-specific resilience KPI
  4. prioritization of actions based on best cost risk ratio
  5. rigid delivery and progress tracking

More than ever current supply chains are at risk

Some of them are manageable, others uncontrollable with catastrophic impacts to organizations. Even though reactive and preventive measures might be obvious, organizations struggle to improve. Our proven five-step approach provides a stringent way to a KPI driven higher level of supply chain resilience.

 

Boost your supply chain resilience – quantified by the resilience KPI!

Speak to an expert

Working with the most qualified Tsetinis Consultants is key to your success.

 

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

 

Get started now!

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Martin Kruschel

Partner

Materials Management

Product Profitability Programs

Restructuring & Organizational


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Dr. Kenneth Sievers

Senior Principal

Materials Management

Post Merger Integration Programs

Profitability Programs


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