Recently, I was having an interesting conversation with a friend who manages a large transportation budget. He is under enormous pressure as his company's CEO has put out the mandate: CUT COSTS NOW! And he also needs to make sure his company's supply chain is protected. After listening to him, I suggested that in order to accomplish those objectives, he might have to "think the unthinkable!"
I mentioned to him that "thinking the unthinkable" will be addressed next week when I speak at the Journal of Commerce’s TPM25 event in Long Beach. TPM is considered one of the best global ocean supply chain conferences in the world, but it actually covers all modes of transportation. (If you’ll be attending TPM, simply send me an email and let’s arrange time to connect.)
Next Tuesday afternoon, Bill Cassidy, Holly Pearce, and I will focus on "Supply Chain Disasters: Planning for the Unthinkable". Don't let the word "disaster" fool you. Our pre-session phone call yesterday addressed the same concerns that I raised with my friend: In today's complex supply chain world, "thinking the unthinkable" can be extremely valuable - not just in avoiding supply chain disasters, but also in helping companies effectively lower their costs.
During the presentation we will highlight critical points to consider when you want to “think the unthinkable.”
First, scenario planning and asking the “what if” questions is critically important in controlling costs and protecting supply chains. For example, back in 2021 or 2022, the unthinkable occurred when container rates shot up from $2-3000 to $25-30,000 in a matter of months.
Second, assess how the "unthinkable" could impact your company. For example, how well is your company prepared for unexpected things like a cyber attack that could literally shut operations down overnight?
Third, beyond understanding how “unthinkable” events will affect your company, it’s important to be able to answer the “what’s my backup plan” question and address "what are my options and alternatives." As we learned during our interview with MIT Professor David Simchi-Levi about risk mitigation, a lot of companies have supply chains that are seriously exposed because they don’t understand the things that could put them out of business. They also have not arranged alternatives or considered suppliers that could step in to fill the gap if needed.
TranzAct’s “Supply Chain Rapid Assessment” tool has proven to be very effective in helping companies “think the unthinkable” and understand the things that must be done to protect their supply chains. But beyond protecting their supply chains, the Supply Chain Rapid Assessment also highlights how thinking strategically about supply chain issues can lower your costs – even when your rates are going up!
If you’re looking for help with supply chain planning and identifying risks, let’s talk! Simply send me an email, call, or let’s schedule a time to meet. And if you’re at TPM next week let’s connect. I’d love to meet you personally and hear about what’s going on in your supply chain world.
TPM25 by S&P Global - Session Details
Supply Chain Disasters: Planning for the Unthinkable Container Shipping
Tuesday March 4 - 5:05 pm - 5:45 pm (PST)
There’s no shortage of potential events that can disrupt and derail supply chains, from global pandemics and regional conflicts to port strikes and supplier bankruptcies. But a surprisingly large majority of shippers surveyed don’t even have a written disaster plan to ensure their supply chains and their businesses can survive the unexpected. Only about 30% of businesses pre-emptively plan for supply chain disruption in a formal manner, using disaster preparedness plans, according to consulting firm Colliers SCS. When it comes to risk management, "doing nothing” costs real money, reducing corporate profitability even before accounting for the potential cost of supply chain disruption. This session will hammer out practical steps to develop written risk management and continuity plans that protect end-to-end global supply chains from first to final mile. Topics covered will include what needs to be covered by such plans, who should develop them, how to win support and resources from the C-level. How should plans be implemented when disaster strikes? What are the real budgetary benefits of having a written plan and can we really plan for disasters and problems as yet unimagined?
Speakers:
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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