Challenges - Shippers - Strategic Network Planning

Supply Chain Risk Management

Poor integration of planning and operational components. Decisions based on outdated, historical information. Insufficient supply chain risk management.

In a fast-changing world that is turning ever faster, digitally integrated and without any buffer, business risks are bound to grow alongside increases in speed and efficiency. Buffers in lead times and stock can be eliminated by the system in order to generate higher flexibility and decrease cost.

At the same time, digitalization allows new value creation networks of multiple interlinked organizations that work in harmony to fulfill customer needs. But as these needs become more complex and processes become more streamlined, the system as a whole becomes more susceptible to chance.

Unlike factory systems, in which risks can be mitigated organizationally from within, transports networks suffer from a more diffuse set of risk that cannot be easily avoided.

Many companies have failed to establish a system that adequately evaluates the real world risks for which they need to be prepared--risk from natural disasters and wars to piracy and financial instability. Companies need solutions that automatically evaluate the importance of various trade lanes and combine those assessments with risk evaluations to create awareness on business critical situations.

Generating critical trade lanes of the future, allowing impact analysis, and helping document mitigation strategies in a collaborative environment will be critical for mastering the challenges of future supply networks and building reactive strategies for all worst-case scenarios.