Accenture’s Paul Stanley discussed how businesses can close the information gap in supply chain risk management at Supply Fest 2014.
According to Stanley, volatility or risk to the supply chain is at its highest level since 1970s. It is important for organisations to use information to mitigate supply risk.
He said: “When we look at information on how companies communicate to their supply chains, it is very audit-driven, very static and data is only appropriate for known risks.
“The effort is focused on mitigating the risk we perceive. What is more difficult to respond to are random events.”
He explained there are three key trends worth being aware when it comes to supply chain risk. The first is global exposure.
He said: “The depth and spread of global supply chains can create masks.” For example, the horsemeat issue last year.
The second is risk evolution such as environmental and social threats and the third is informal information we get by living in a connected world.