SINGAPORE: More and more companies are adopting risk management strategies to maintain their supply chains says The Council for Supply Chain Management Professionals (CSCMP).
Speaking at the latest meeting of the association, Teo Ser Luck, Singapore's minister of state for Trade and Industry, said his government maintains a close working relationship with the logistics industry to establish best practices in supply chain security. "As an island nation, Singapore is heavily dependent on the smooth functioning of our supply chains to ensure the uninterrupted supply of our food, fuel, and other daily necessities of life," he declared.
According to the CSCMP, some of the major risks faced by global supply chains are natural disasters, regulations, and quality breaches. At the same time, says CEO Rick Blasgen (left), manufacturers "want to do the right thing" and protect employees, partners and customers involved in the supply chain.
"Threats to supply chains are too easily ignored until the worst happens. Prevention through the exchange of best practices, ideas, and case studies is not only better than a cure, but always less costly," he explains.
CSCMP members now want to take risk evaluation beyond Tier One suppliers, to engage Tier Two and Tier Three suppliers in the risk management process: "Collaboration is alive and well," declares Blasgen, adding that manufacturers increasingly want logistics companies to be part of their business process: "[They] are moving away from 90-day cycles; companies are looking for a longer engagement period with providers in a bid to mitigate risk and sustain service levels."
With logistics companies the first responders in the opening of new markets, mapping supply chains for exposure to floods, tornadoes, earthquakes and other disasters is growing in importance. This, he suggests, is one reason why manufacturers want closer relationships with their suppliers.
Founded in 1963, the CSCMP has more than 9,000 members in 63 countries representing business, government and academia.