NEWS FLASH! Your Supply Chain is Vulnerable and at Risk

Nov 9, 2022

Recently, I sat down for an interview with my good friend Adrian Gonzalez. I always enjoy my conversations with Adrian. As the publisher of a great weekly publication “Talking Logistics” he has a lot of great information about supply chain and logistics issues.

Adrian wanted to interview me because he heard about the talk that I’ve been giving to C-Level executives about their supply chain issues. Specifically, over the past year I’ve given a presentation to over 2,000 executives that has been well received, but has proven to be a bit controversial because it has three important messages for CEOs and other C-Level executives.

And that message is this: First, as the CEO, if you’re looking to blame a person for the fact that your company’s supply chain isn’t as good as you would like it to be, the first place you need to look is in the mirror! The reason for this is because CEOs will get the supply chains they are willing to live with.

Second, if your company is taking its supply chain capabilities for granted, don’t be surprised when bad things happen and your company is constantly reacting and operating in “firefighting” mode when it's time to deal with issues caused by a mediocre or average supply chain.

Third, C-Level executives cannot delegate to others the sole responsibility for building and managing a great supply chain.

Like I said, this message can be a bit controversial and that’s why I encourage you to listen to the interview because Adrian asked some very important questions. For example, he asked me how I respond when a C-Level executive tells me they are not taking their supply chains for granted.

I responded that when I hear this, I ask the following three questions:

1. Does your company have a written supply chain strategy?
2. Has your company mapped its supply chain?
3. Has your company stress tested its supply chain?

If the answer to any of these three questions is “No,” then guess what? Your company is taking its supply chain for granted.

I mentioned to Adrian that during these presentations I ask the audience to stand and ask them to rate their company’s supply chain capabilities on a five-point scale as follows: “1” being a third world supply chain, a “3” would be an “average” supply chain and a “5” being a “world-class” supply chain.

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Now here’s where it gets interesting. To date, of the more than 2,000 people that have heard this message, less than 15% of the audience ranks their supply chain as a “3” (a.k.a. “average”) or higher.

Adrian confirmed that this is a big issue even with some of the larger shippers that are in his research group. And that is why Adrian and I discussed why average to mediocre supply chains are more vulnerable and at risk in today’s uncertain business environment.

How about your company? Is your supply chain more vulnerable and at risk than you might realize?

Let’s close with some good news. Adrian and I shared some information that can help your company build a stronger supply chain. So if you’re interested in learning more about some proven strategies, you can either listen to the interview or just send me an email or give me a call. I’d be happy to share with you some strategies to consider that will lead to having a better supply chain – AND IT WON’T COST YOU A DIME!

Finally, on November 15, at 10am Central/11am Eastern, we will be hosting our “What You Wish Your CEO Knew About Truckload and LTL Freight" webcast with our friends from CSCMP’s Center of Excellence and the NIT League. During this webinar, Dr. Chris Caplice and Kevin Smith will do a great job of explaining what makes sourcing truckload and LTL unique and how to explain these differences to the C-Level executives. AND THIS TOO WON’T COST YOU A DIME!

If you haven’t yet signed up, you're either too smart or too busy because this is going to be a great webcast! Sign up and I’ll see you on the 15th.