Single Point of Failure

Over the past decade organizations have faced relentless customer
demand for better value at less cost, individual customization,
greater choice, faster delivery, higher quality, exceptional
service, and more recently - increased environmental and
social consciousness. The organization's weapon of
choice to address this increasing demand has been the
supply chain. However, as the supply chain footprint changed (e.g.
outsourcing, off-shoring and customer/vendor empowerment) so did
the organization's exposure to uncertainty. Organizations
were taken by surprise since this exposure was unanticipated,
complex and beyond their ability to manage. As customers become
more demanding and change occurs at an even greater pace, supply
chain risk continues to propagate like a parasite. Organizations
and societies are at much greater risk of systemic failure because
of the massive interdependency throughout global supply chains. The
priority now is two-fold; play catch-up and address these massive
gaps while deploying more intelligent and integrated strategies
(i.e. social aware, instinctive, dynamic and predictive) for
dealing with continuous change.

Single Point of Failure: The 10 Essential Laws of Supply
Chain Risk Management uses analogies and dozens of case
histories to describe the risk parasite that infects
all supply chains while revealing methods to neutralize that
parasite. The book addresses the questions: What are the "single
points of failure"? How exposed are customers, investors, other
stakeholders and ultimately the organization? What is the
measurable impact (i.e. brand, financial, strategic, and
non-compliance)? Who establishes the "risk paradigm"? How does the
organization efficiently and effectively allocate precious
resources - time, people, management attention, and capital? How is
success measured? This book is both technically powerful and
effectively realistic, based on today's complex global economy.

Autorentext

GARY S. LYNCH, CISSP, is an Author, Managing Director and Global Leader of Marsh's Supply Chain Risk Management Practice. He has contributed to the World Economic Forum (WEF) Global Risks Report, been a speaker on pressing global business risk issues for organizations such as Asia Pacific Economic Cooperation (APEC/Singapore & Australia), Risk and Insurance Management Society (RIMS), the World Customs Organization (WCO/Brussels), and The Wharton School, Center for Risk Management and Decision Processes. He also leads Marsh's Global Pandemic Response Center. He works as a management consultant, specializing in helping senior executives solve complex business risk issues. He has developed critical thought leadership and solutions around emerging risk issues, including supply chain risk management and financing, information protection strategies and schemes, value chain risk strategies, cyber/IT-risk, business resiliency and continuity, and pandemic preparedness. He is internationally recognized and has held executive operational and IT risk positions at Booz Allen Hamilton, Chase, Prudential, and Ernst & Young. He is a pioneer in helping companies use his leading-edge methodology to transform their risk management programs. Gary is the author of At Your Own Risk (Wiley) and has appeared on NBC Nightly News, Bloomberg TV, ABC, and CNBC, and has been published in CEO Magazine, Shanghai Business Review, and CIO Insights.

Zusammenfassung
Over the past decade organizations have faced relentless customer demand for better value at less cost, individual customization, greater choice, faster delivery, higher quality, exceptional service, and more recently increased environmental and social consciousness. The organization's weapon of choice to address this increasing demand has been the supply chain. However, as the supply chain footprint changed (e.g. outsourcing, off-shoring and customer/vendor empowerment) so did the organization's exposure to uncertainty. Organizations were taken by surprise since this exposure was unanticipated, complex and beyond their ability to manage. As customers become more demanding and change occurs at an even greater pace, supply chain risk continues to propagate like a parasite. Organizations and societies are at much greater risk of systemic failure because of the massive interdependency throughout global supply chains. The priority now is two-fold; play catch-up and address these massive gaps while deploying more intelligent and integrated strategies (i.e. social aware, instinctive, dynamic and predictive) for dealing with continuous change. Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management uses analogies and dozens of case histories to describe the risk parasite that infects all supply chains while revealing methods to neutralize that parasite. The book addresses the questions: What are the "single points of failure"? How exposed are customers, investors, other stakeholders and ultimately the organization? What is the measurable impact (i.e. brand, financial, strategic, and non-compliance)? Who establishes the "risk paradigm"? How does the organization efficiently and effectively allocate precious resources - time, people, management attention, and capital? How is success measured? This book is both technically powerful and effectively realistic, based on today's complex global economy.

Inhalt

About the Author xi

Preface xiii

Acknowledgments xvii

Introduction Getting to the Truth 1

Chapter 1 The Laws of the Laws 9

Laws of the Laws

Risk Management Defined

Law of the Laws #1: Everyone, without Exception, Is Part of a Supply Chain

Law of the Laws #2: No Risk Strategy Is a Substitute for Bad Decisions and a Lack of Risk Consciousness

Law of the Laws #3: It's All in the Details

Law of the Laws #4: People Always Operate from Self-Interest

Indirect and Secondary Impacts

What Can You Conclude?

Notes

Chapter 2 Law #1: If You Don't Manage and Lead Change, You Have to Surrender to It 31

The Risk Wake - Up Call Planned Change, Unplanned Consequences

We Can't Change the Past, but . . . Can We Change the Future?

Can You See the Icebergs Ahead?

Notes

Chapter 3 Law #2: The Paradigm Should Destroy the Parasite: Begin by Defining the Paradigm, Not by Fighting the Parasite 61

The Paradigm in Action

Why Does the Organization Need to Identify a Supply Chain Risk Paradigm?

Beware! The Paradigm Can Shift without Notice

If the Shoe Fits

Notes

Chapter 4 Law #3: Manage Your Business DNA in a Petri Dish of Evolving Risk 87

Expanding the Risk Awareness Universe

Know Your BusinessKnow Your Surroundings

The Keys to Your Risk Kingdom

Your Operation's Complete Footprint

Your Action Plan

Notes

Chapter 5 Law #4: In Supply Chain Risk Management, Demand Trumps Supply 115

Everyone's Customer

Building Your Demand-Based Strategy

Market and Client Factors to Consider

Notes

Chapter 6 Law #5: Never Set Up Your Suppliers for Failure 143

Supply Chain Risk Management Program

Sourcing Strategies That Create More Risk, Not Less

Trust but Verify

Notes

Chapter 7 Law #6: Managing Production Risk Is a Dirty Job: Focus on Managing the Endless Risk of Manufactured Weakest Links 173

Going Global with the Production of Risk

A New Collaborative Effort

Why Is Production So Critical?

Part Two of the Double Whammy: Labor

Notes

Chapter 8 Law #7: The Logistics Risk Management Rule: Managing the Parts Does Not Equal Managing the Whole 199

What Is Logistics Risk?

Cargo and Warehouse Theft

The Piracy Risk

What's at Risk?

Single Points of Failure and Aggregate Risk

Supply Chains Don't Survive on Product Flows Alone; Information Flows Are Essential

In the End It's All about the Priorities and Econo…