The supply chain industry has always had to account for and deal with risk. Weather event disruptions, such as Hurricane Katrina in 2005, Hurricane Sandy in 2012, and the volcanic ash cloud of 2009, as well as global terrorist activities and political turmoil, all have a major impact on the supply chain and how enterprises prepare for future disruptive events with their contingency planning.
Risk mitigation or contingency planning is a strategy to prepare for and lessen the adverse effects of risks. Supply chain risks range from relatively minor to absolutely devastating. However, the majority can be mitigated through a combination of strategies such as avoidance, transfer, elimination, sharing, or reduction to an acceptable level.
While some events remain entirely outside of your control, being prepared and operating with clear contingency plans in place on the best days can minimize lasting negative impact in dire circumstances.
Strong Operational Resilience
It’s difficult to predict when unexpected events may occur, but there are several steps your organization can take to improve their supply chain management and overall operational resiliency. These steps include:
Analyzing All of the Angles
When simulating risk, consider all of the possible circumstances and their associated outcomes. Selecting just one risk to design your strategy around will not provide successful long-term mitigation. Take a holistic view of your entire supply chain and try to identify the weakest links.
Optimizing Your Supply Chain
Consider all potential disruptions and the ways you can build and design your supply chain to keep it operational in the face of any foreseeable and unforeseeable challenges. Adjust any areas that may be particularly vulnerable.
Verification and Trust
Due diligence of suppliers and service providers is key to having a strong solution. Unfortunately, this is often not tested until a disruption occurs. It’s then that your process and auditing of suppliers pays off. Be proactive and look at your supplier and service providers’ business continuity plans. How do they implement these? When were they last updated?
Implement a Risk Mitigation Solution with Overhaul
Overhaul helps shippers and logistics service providers stave off supply chain risks. In addition to real-time Trace & Track capabilities, our solution allows customization of risk event reactions based on your business’ particular supply chain needs. Here are some common risks that Overhaul can help you mitigate with ease:
Disruption in Supply of Tracking Hardware
Seeing your shipments in real-time is essential to monitor their progress, protect your cargo, and ensure compliance in transit and delivery. What happens if your device hardware provider’s supply chain gets disrupted and you have no devices to track your shipments.
Overhaul’s Solution: Our system can integrate with any tracking device, so we can easily tap into an unimpacted device hardware provider. The Overhaul mobile app for drivers is also essential in providing a key data point from pickup to delivery. The combination of our tracking solution allows you to have immediate and constant visibility into your shipments.
Reduced Availability to Monitoring
Not only do you need to know where your cargo is at any given point, but you also need to know what’s happening to it. What happens if your monitoring team isn’t available.
Overhaul’s Solution: Our software automates security and monitoring operations through a customizable rules engine providing your shipments with a uniquely designed workflow. This means that if anything happens to a shipment, an instant alert is created, and any resulting required action can be taken immediately.
Additional Security Required
Certain global supply chain disruptions such as natural disasters, pandemics, or political turmoil increase the likelihood of theft of cargo that wasn’t previously a target. What happens when you need to make sure your cargo is secure and don’t have a lot of time for complicated setup?
Overhaul’s Solution: Our mobile app for drivers is an instant solution to provide information on shipments that weren’t necessarily monitored before. We’ll have insight into what’s happening with your supply chain and dispatch law enforcement directly through our LE Connect solution. This option is there for you when you need it most. With theft, time is of the essence and a quick reaction can result in the recovery of products. We take all the stress out of this with a direct transfer of shipment intelligence directly to law enforcement and then to patrol officers.
Arduous Supply Chain Visibility Support
Having visibility into your supply chain is vital regardless of what’s happening, but what if your current solution isn’t working and you need to make a change — fast.
Overhaul’s Solution: Our multi-layered, device-agnostic approach means that implementation is quick. You’ll have the option to receive an off-the-shelf solution while benefiting from our extensive experience at transferring your SOP (Standard Operating Procedures) and expected compliance ‘Standards of Care’ into our automated workflow.
Don’t Wait to Create a Successful Risk Mitigation Strategy
Your supply chain is constantly at risk. Whether it’s a natural disaster, a pandemic, a broken reefer, or thieves, having a strategy in every circumstance is critical. Having a partner that allows you to foresee risks and allows them to be acted upon immediately, helps.
Get more information about how Overhaul’s solution fits into your supply chain visibility and risk mitigation strategy needs by scheduling a demo.