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Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management

ISBN: 978-0-470-42496-4
Hardcover
320 pages
November 2009
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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 Business—Know 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 Economics

Notes

Chapter 9 Law #8: Mitigation: If Supply Chain Risk Management Isn’t Part of the Solution, It Will Become the Problem 225

Now What Do I Do?

Enter the Risk Intelligent Supply Chain

Economic Change—A Catalyst for Redefining Resiliency Management

Predisruption

At Time of Disruption

Postdisruption

What Is Risk Mitigation?

Notes

Chapter 10 Law #9: Financing: The Best Policy Is Knowing What’s in Your Policy 249

Insurance and Its Role in Supply Chain Risk Management

Background on Insurance in the Supply Chain Risk Area

Current Insurance Solutions and Their Limitations

Introducing Supply Chain Insurance: Approach and Challenges

Corporate Customer Benefits Arising from Supply Chain Insurance

Conclusions

What Does the Future Hold?

A View from the Insurer’s Side

Notes

Chapter 11 Law #10: Manage the Risk as You Manage Your Own: Your Supply Chains Are All Interdependent but Unique 279

Questioning Old Assumptions

Personal Laws of the Laws

Index 287

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