Posts by grover

Statutory Warning – Peak Months of Hurricane Season

October 17, 2018 Posted by Supply Chain Risk Management 0 thoughts on “Statutory Warning – Peak Months of Hurricane Season”

A Category 4 hurricane is a major concern for businesses that need to keep a count of their inventory and don’t want their suppliers to face any shortages. Storms become more active during the months of August, September and October. It has been estimated that 2018 will witness around 10-16 named storms. A storm that reaches hurricane status is one where winds are at least 74 mph. A major hurricane is one that reaches category three which comes with winds of at least 111 mph.

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Evolutionary Journey to Supply Chain Management

July 20, 2018 Posted by Supply Chain Risk Management 0 thoughts on “Evolutionary Journey to Supply Chain Management”

Surveying the Way to Effective Business Continuity Programs

As customer demands, ISO Standards, other regulations, and disruptive events continue to increase the pressure on 21st century enterprises, the need to develop well-defined and practicable business continuity plans becomes harder to overlook.

Many organizations are taking first steps on the journey to create mitigation plans that can be applied in times of crisis. However, based on the growing demands to incorporate, strategic planning and procurement decisions too are vital inclusions in these programs—yet are all too frequently neglected.

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The BCP Evolution: From Dusty Documents to Real Resiliency

July 19, 2018 Posted by Supply Chain Risk Management 0 thoughts on “The BCP Evolution: From Dusty Documents to Real Resiliency”

A few years ago, I was assigned responsibility for maturing a business continuity program (BCP). During the program’s creation, I had the opportunity to meet a number of business continuity leaders, many of whom had developed world-class systems for business continuity management.

As part of the discovery process for my program, I asked many questions, some of which were similar to those listed below, and addressed the very basics of the BCP discipline:

  • What were the first steps taken in your organization’s business continuity journey?
  • What key items did you classify as “must-haves” in the program?
  • What standard did you establish as the basis for your program?

Of course, there were many more questions besides these and indeed, I received a wealth of input from various silos across a large number of companies.  Certainly, it was enough to highlight the many considerations for establishing an organizational BCP-expansion roadmap.

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Resilinc Predicts Capacity Shortfalls, Further Raw Material Price Increases for US Manufacturers

June 4, 2018 Posted by Multi-tier Mapping 0 thoughts on “Resilinc Predicts Capacity Shortfalls, Further Raw Material Price Increases for US Manufacturers”

Author: Grover Righter, Chief Marketing Officer, Resilinc

Resilinc predicts that if Chinese demand for US products materializes as projected, manufacturing companies in the US will begin to experience shortages, both of workers and raw materials. These shortages may jeopardize the ability of manufacturers to fulfill the increased demand.

Indeed, on the logistics side of the supply chain, labor shortfalls are already evident, as a lack of truck drivers leaves companies unable to meet current levels of demand for products made in the US—never mind those potentially inflated by China in the near future.

A Downward Unemployment Trend

Unemployment in April was 3.9%, the lowest it has been in 17 years. According to Trading Economics, unemployment in the US averaged 5.78% from 1948 to 2018, hitting a record high of 10.8% in November 1982 and an all-time low of 2.5% in 1953.

The reduction in unemployment resulted partially from a fall in labor force participation, which hit a three-month low of 62.8%. The Bureau of Labor Statistics expects the participation-rate reduction to continue, due to an aging US population. Therefore, the overall unemployment rate is likely to fall further, perhaps reaching 3.7% in 2019, according to FocusEconomics Consensus Forecast.

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Commodity and Raw Material Prices on the Rise

While unemployment falls in the United States, the prices of many commodities and raw materials are escalating. Commodities like steel, aluminum, corrugated metals, diesel fuel, caustic soda, and their derivative products are becoming more expensive, driving manufacturing-cost increases in industries that depend heavily on these materials.

The April 2018 Manufacturing ISM Report on Business shows that the Price Index registered higher raw material prices for the 26th consecutive month. In addition, concerns exist about uncertainty surrounding current and potential US-China tariffs, which continue to be a possible price risk on the horizon. Many companies have put expansion plans on hold (or slowed them down) in light of these uncertainties.

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Source: Trading Economics Commodities Forecast 2018

 

Supply-side Concerns in the Spotlight

The ISM Manufacturing Report on Business also reveals that a slow-down in supplier deliveries created a backlog of orders. Current levels of demand are actually quite healthy, but most companies are unable to keep up due to supply-side issues.

Against this or any other backdrop, increased Chinese demand for US products can only be a positive development, yet the ability of US manufacturers to meet it is, at best, questionable right now. There is a real risk that the US manufacturing and export sector will miss a perfect opportunity to exploit Chinese demand—a demand that would help to counter record trade deficits and relieve the tariff-war scenario.

CEOs, Boards, Customers: They’re all Watching!

CEOs and boards do not like to leave demand unfulfilled for any reason, with mismanagement on the supply side being no exception. The expectation is that supply chain leaders predict market developments, plan for them, and ensure the supply chain adapts to support growth opportunities.

In short, supply-side bottlenecks are not on the executive agenda and your human resources are not well-spent chasing shortages and resolving allocations under the shadow of constraints.

Aside from that, if your company falls into the pattern of placing customers on allocation, pushing out deliveries, and failing to comply with perfect order expectations, your customers will soon seek out alternative suppliers. You will always have competitors ready to promise what you fail to deliver—and a promise is often enough to prompt defections by unhappy customers.

Meanwhile, premiums paid for freight and raw materials erode margins and further curtail long-term growth opportunities for your organization, so these too, are issues to address preemptively, rather than as a response.

Fortune Favors the Informed…

It may not be a Chinese proverb, but perhaps it should be, because the difference between leaders and laggards is that leaders plan and act pre-emptively. Those that evaluate market movements and trends will be planning for predicted outcomes now—and taking steps to ensure they can meet demand as it materializes.

Leaders invest in supply chain mapping and identifying suppliers and sites that have struggled to meet on-time delivery targets. They are also gathering capacity information and upside flexibility data from these sites.

Supplier and Site Capacity: A Good Place to Start

Resilinc’s Supplier Capacity Assessment tool can help you join the class of leaders that prepare their supply chains to dominate across a wide range of scenarios. We can help you quickly identify suppliers and sites operating at high capacity utilization rates and with less ability to add flex-capacity at short notice.

Armed with this vital information, your supply chain designers can spend their valuable time identifying and qualifying alternative, more readily capable sites and sources—so your enterprise won’t miss any opportunity to profit from increased levels of demand.

US and China Trade Wars: Analyzing the Supply Chain Impact

May 18, 2018 Posted by Uncategorized 0 thoughts on “US and China Trade Wars: Analyzing the Supply Chain Impact”

 

Understanding supply chain dependencies and the potential impact of trade wars between U.S. and China, and how you can draft an action plan to proactively respond to tariffs imposed by both countries
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R Score and its Impact on Supply Chain Risk Management

April 11, 2018 Posted by Uncategorized 0 thoughts on “R Score and its Impact on Supply Chain Risk Management”

 

Musings on a Metric: Supply Chain Risk Management with R Score (more…)

Catalonia Independence Crisis Requires Close Monitoring by Supply Chain Experts

October 10, 2017 Posted by Uncategorized 0 thoughts on “Catalonia Independence Crisis Requires Close Monitoring by Supply Chain Experts”

Many economic, capacity and labor challenges resulting from the independence process could cause serious issues for supply chains dependent on Spain and beyond

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SUPPLY CHAIN RISK MANAGEMENT IS A DATA PROBLEM…

August 2, 2017 Posted by Uncategorized 0 thoughts on “SUPPLY CHAIN RISK MANAGEMENT IS A DATA PROBLEM…”

This is first in the series of blogs highlighting the importance of data in supply chain risk management.

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CEO Resilinc

Women Entrepreneurs and Sexism in Silicon Valley – A Female Founder’s Perspective from the Trenches

July 27, 2017 Posted by Uncategorized 0 thoughts on “Women Entrepreneurs and Sexism in Silicon Valley – A Female Founder’s Perspective from the Trenches”

With all the news about harassment faced in Silicon Valley by women, I brought up this topic with my board members today. I took the opportunity to thank them for being normal and good people.

I raised $8 million in 2013 in my Series A round. I, a first generation Indian immigrant, woman, first-time entrepreneur, the CEO out of a husband-wife team, raising money for a supply chain startup was also in my third trimester with my little baby girl due in three months. (Entrepreneurs who read this sentence will understand how many inherent Silicon Valley biases I would need to overcome).

My investors gave me a fair term sheet, no games, no problems, no drama. I closed the round three weeks after my daughter arrived. I raised more money than I had hoped. I always thought it was my accomplishment and Resilinc's sheer awesomeness - "Of course we got funded" I thought, "We had reference-able customers, a huge market and a proven business monetization strategy". But after reading about the massive anomaly in funding that went to female vs male founders ($1.5 billion vs $60+ billion), I realized that the deck was actually hugely stacked against me and that I couldn't have done it without the good, normal people who believed in me. I needed to say something to these people who'd made a difference in my story and who gave Resilinc a fair chance.

No one ever sets out in the morning saying, "I'll be a sexist pig today and set a woman or two down, and show them their place". So the discrimination is so deep in the psyche that change is difficult, although not impossible. We have to talk about this even if it is uncomfortable. After all no one ever believes themselves to be sexist. Yet one prominent investor did say that we will fund Resilinc if anyone but you is the CEO (days after I shared that I was having a baby). He went on to send me CEO profiles of people (all men BTW) without once asking ME what I thought should be the characteristics of the person to lead the company that was founded from our sweat and blood and tears and sacrifice, not to mention our hard earned cash.

So, thanks Greg Silich (Angel Investor), Ravi Mohan (Shasta Ventures), John Dougery (Inventus Capital Partners), Ullas Naik (Streamlined Ventures) and all my seed and venture and angel and institutional investors who have believed in Resilinc and in me. You're good people. I want everyone to know that.

Their reaction, when I thanked them, is right on the one hand - They felt this shouldn't even be an issue, because they funded Resilinc and the team because of our capability, business value prop, market size and our expertise. Not despite, or because of anyone's gender. However, I have experienced discrimination first hand in my career, and as a HIGHLY ambitious woman, I always felt claustrophobic about the glass ceiling above me in every place where I ever worked. And now after seeing the investment statistics, it is clear to me that not everyone is aware of their inherent biases, and therefore, we do need to talk about it.

I feel that the way to drive change is to open the conversation, and to acknowledge the goodness in the people who are being fair and normal, just as we expose the sexist, abusive (and lecherous) pigs that exist among us.

I did that today, and we talked for some time about the challenges women face, and the discrimination I see or experience around me. They talked about some policy proposals that were being floated in the VC community to change things, and I shared my perspectives on how some of those were bandaids at best, and how others could have the unanticipated result of hurting women more.

I am glad we did that.

PS. As for all of you readers who looked at the paragraph about the investor who didn't want to take a risk on a CEO with all that aforementioned "baggage", and empathized with the VC - you know who you are - you need to take a deep breath, and confront some new facts about yourself.


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