Risk Management: Crossed Fingers Aren’t Sufficient
When dealing with supply chain risks, crossed fingers aren’t a solution. Yet, when juggling the competing demands of ensuring low costs, on-time deliveries, global regulatory compliance, client satisfaction and increasing revenue, it’s easy for risk mitigation to become a low priority. For example, a recent study by the University of Tennessee sponsored by UPS Capital found that while 66 percent of the 150 supply chain executives responding said they had risk management expertise in their legal and compliance departments, almost none focused on supply chain risks.
The problem is that risk isn’t comprised only of headline-making disasters. Instead, it’s often the little things that cause problems. Transit rerouting, labor strikes, warehouse shortages, customs delays, malfunctioning refrigeration equipment, and similar issues can expose products to extra handling, drops, rough handling, and temperature excursions.
Singly or as part of a comprehensive risk management system, impact and temperature monitors and indicators can document the actual conditions packages experience. Some monitoring solutions document the event as well as its duration. For example, some impact monitors record multiple events, their GPS locations, as well as the direction and G-force for each impact. Temperature monitors record excursions, their extent and duration. Over time, a comprehensive picture of the entire supply chain emerges, giving supply chain professionals many of the details they need to effectively manage risk.
To learn how impact and temperature monitoring can help identify and mitigate risks throughout your supply chain, contact ShockWatch.