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Supply-Chain Risks

1. Discuss a recent example of an unknown-unknown risk that proved damaging to a supply chain. Explain specifically how each of the following strategies might have mitigated this risk:
a. Invest in redundancy.
b. Increase velocity in sensing and responding.
c. Create an adaptive supply chain community.
2. You are the CEO of a small electronics manufacturing firm that is about to develop a global strategy. Would you prefer a speculative, a hedge strategy, or a flexible strategy? Would your answer to this question change if you were the CEO of a large electronics firm?
3. Discuss some examples of regional products and of true global products. What is it about the products that makes them better suited to being regional or global products?

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1. Discuss a recent example of an unknown-unknown risk that proved damaging to a supply chain. Explain specifically how each of the following strategies might have mitigated this risk:
a. Invest in redundancy.
b. Increase velocity in sensing and responding.
c. Create an adaptive supply chain community.

A recent example of an unknown-unknown risk that proved damaging to a supply chain: When a company invests in an new supply chain system there are several unknown- unknown risks that the company has to face. In 1999, Hershey implemented a new order management, supply chain and CRM system to ameliorate its supply chain system. The system was not ready by April 1999 yet the new system was launched in summer. Hershey has a large percentage of its sales related to Halloween. The supply chain was badly hit and the company was not able to ship $150 million worth of orders. The profits of Hershey slipped and so did its sales.
If Hershey had invested in redundancy then this disaster could have been averted. Even though the products were ready and the trucks were waiting the new system never gave information as to what product had to be loaded on which truck. Had there been a parallel system that would have given vital order management information, this ...

Solution Summary

This solution discusses risks that have prooved to be damaging to a supply chain.

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