EY advice on hyperconnected supply ‘ networks ’
SUPPLY CHAIN
EY advice on hyperconnected supply ‘ networks ’
An EY report on how businesses can increase the resilience of their supply chains says they need to move away from a linear model to “ agile networked ecosystems ”.
It says organisations can achieve these hyper-connected supply networks by focusing on five key areas :
“The key challenge to digitalisation is addressing suppliers ' concerns related to data privacy and security "
MARIA REY-MARSTON MD & SUPPLY CHAIN INNOVATION GLOBAL LEAD , ACCENTURE
1 . Conduct an end-to-end supply chain risk assessment to stress test the supply chain , identify critical risk scenarios and define potential responses .
2 . Invest in key supply chain capabilities – including visibility and monitoring , alternative business operating models , alternative supplier sourcing strategies , network flexibility and agile planning .
3 . Implement risk monitoring and reporting tools , as well as an early warning system that enables a rapid early response to risks or disruptions .
4 . Have a Plan B for supply disruption triggers , such as a natural disaster or terrorist attack . Work to ensure that external and internal communication protocols are in place for such disruptions .
5 . Put in place a crisis management framework for major events , where predefined responses will be inadequate . This should be accompanied by governance procedures .
46 June 2022