Preparing for disruptions through early Detection Preparing - Coggle…
Preparing for disruptions through early Detection
Detecting the potential for a disruption occurs
Ideally before that disruption occurs
Different disruptions have different degrees of impact
Affects how companies prioritize risk management efforts.
Importance of detection lead time
Many risk management expert categorize portential disruptions by two dimensions:
Likelihood of occurence
Magnitude of impact
Disruptions also vary on crucial three dimensions
Detection lead time
A company can reduce the likelihood disruptions by being compliant
Companies can reduce the impact of a disruption
by being prepared to deploy a timely and effective response
Detecting disruptions quickly
Monitor the weather
key data sources for the most common types of business disruptions is weather monitoring
Track the news
Variety of local, national and international news services provide a stream of data on other types of disruptive events
Use sensor data
The raw data flows to the company’s centralized security operations center, which handles
the retailer’s safety, security, and emergency response needs
Monitor the supply base
With the general shift from local production and vertical integration strategies to globalization and outsourcing come the need to monitor global supply base
Detection at a distance has its limits. Surveys and third-party data go only so far in detecting incipient disruptions or disruption-propone suppliers.
Be on the alert for deception
To monitor the quality of raw materials supplies, many companies use routine laboratory tests to detect low quality, diluted, or adulterated materials.
Develop traceability capabilities
Some disruptions lurk in the complexities of the materials, components, people, companies and interactions inherent in suppply chains.
Monitor social media
Six billion people (out of the estimated 7 billion people in the world in 2013) have access to a mobile phone
Track regular developments
Changes in government policies affect companies’ cost, structures, sititng decisions and compliance challenges.
Four steps to more effective detection
Map the supply chain
Assess global events
Create supply chain control towers
Improve response times through data and analysis
Fast detection gives companies time to prepare disruptions or to mitigate consequences