In the previous blog we discussed that the organization functions in conjunction with its immediate surrounding and society at large and thus understanding the ecosystem is preliminary to building an agile supply chain.
The third imperative is –CONDUCT SCENARIO PLANNING FOR IMPACT ASSESSMENT.
The next step after understanding the ecosystem is to conduct scenario analysis to gauge the impact of macroeconomic scenarios on the organization’s supply chain & sourcing strategies. Conducting scenario planning is simple for predictable events and market fluctuations. However, how can organizations tackle events that cannot be predicted and have a negative impact on the supply chain?
For example, consider the following events, which require procurement to establish theoretical scenario planning
Let us study this imperative with the following case;
Consider a case which involved a leading manufacturer of copper wire seeing trends like increasing supplier power, few new mines, continued decline of mined iron grades and limited copper substitution.
With the above trend, the company faced following issues;
The above issues can be resolved with the help of technology by
In the next blog we will explore imperative no. IV in building an agile supply chain.
For further reading, click on the download button below to access the white paper-Creating Agile Supply Chains to Counter Supplier Risk[symple_button color=”blue” url=”http://campaign.zycus.com/Google-Agile-Supply-Chain.html/WebBlogL87943″ title=”Visit Site” target=”blank” border_radius=””]Download Whitepaper[/symple_button]