Tag Archive: risks

Will Your Supply Chain Risk Surprise You?

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Supply chain risks abound! Just look at the recent bankruptcy of Hanjin. It created havoc in the global supply chain. Ships were virtually stranded on the water. No one knew how they’d get paid. Customers still needed the product. And so the results were scary. Have you thought about these types of risks within your supply chain? At our APICS Inland Empire executive panel and networking symposium, we had a panel of experts on navigating the global supply chain. A renowned international business attorney brought up a significant topic — what if a conflict brews in the South China sea?…
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Why Looking at Return on Investment (ROI) is So Much Better than Cost

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How many times have you heard about managing cost (or saving money) in the past week? I bet quite a few, as almost all companies focus significant efforts on cost. In all functions, and certainly if you are in or responsible for Operations, a large portion of your responsibility is to reduce cost. Similar to real estate where it is “location, location, location”, I often hear about “cost, cost, and cost”. Certainly managing cost is vital to success; however, being solely focused on cost will drive you to failure! Instead, I advocate thinking about return on investment. For example, if…
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Why We Shouldn’t Shy Away from Risk

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I always look for trends as I find that the 80/20 of success comes from watching and proactively addressing trends. This week, it has been obvious that if we are NOT willing to take prudent risk, things are likely to go awry. For example, if your sales forecast has been formulated and reviewed to the best knowledge of your organization, and it translates into x number of manufacturing employees at current efficiency levels, taking the prudent risk of hiring people even if it adds to near-term cost for a slightly longer-term return on investment is well worth it. In another example,…
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