Assessing a supply chain's vulnerability to disruption is a specialty of IBM's Lou Ferretti. A director within Big Blue's hulking Integrated Supply Chain operation, Ferretti recently spearheaded the development of an internal supply chain risk and vendor risk assessment program.
The project required considerable time and resources, as the ways in which a supply chain can be disrupted are manifold. Whether from bad weather, geopolitical strife, a natural disaster, a business setback, or a host of other occurrences, the disruption of a supply chain can bring a company's operations to a screeching halt—an expensive proposition to be sure. Supply chain disruptions can range from a nuisance to a catastrophe for you and your company's operations.
Ferretti's project at IBM is a reflection of that realization. Even the most resilient of supply chains still face some risk of disruption. Given today's market dynamic and the quest for optimal efficiency and customer service, it's important to be sure you are doing all you can to avoid a business calamity.
To help you determine if you are prepared for disruption and able to respond quickly with a fix, consider the following questions. If you don't have answers, don't fret, but do starting thinking about them and do get them answered—pronto!
The time to decide how you would respond is before you have to respond.