Single Point of Failure: The Ten Essential Laws of Supply Chain Risk Management

Single Point of Failure: The Ten Essential Laws of Supply Chain Risk Management

by Gary S. Lynch

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Overview

Single Point of Failure: The Ten Essential Laws of Supply Chain Risk Management by Gary S. Lynch

Over the past decade organizations have faced relentless customerdemand for better value at less cost, individual customization,greater choice, faster delivery, higher quality, exceptionalservice, and more recently – increased environmental andsocial consciousness. The organization’s weapon ofchoice to address this increasing demand has been thesupply chain. However, as the supply chain footprint changed (e.g.outsourcing, off-shoring and customer/vendor empowerment) so didthe organization’s exposure to uncertainty. Organizationswere taken by surprise since this exposure was unanticipated,complex and beyond their ability to manage. As customers becomemore demanding and change occurs at an even greater pace, supplychain risk continues to propagate like a parasite. Organizationsand societies are at much greater risk of systemic failure becauseof the massive interdependency throughout global supply chains. Thepriority now is two-fold; play catch-up and address these massivegaps while deploying more intelligent and integrated strategies(i.e. social aware, instinctive, dynamic and predictive) fordealing with continuous change.

Single Point of Failure: The 10 Essential Laws of SupplyChain Risk Management uses analogies and dozens of casehistories to describe the risk parasite that infectsall supply chains while revealing methods to neutralize thatparasite. The book addresses the questions: What are the "singlepoints of failure"? How exposed are customers, investors, otherstakeholders and ultimately the organization? What is themeasurable impact (i.e. brand, financial, strategic, andnon-compliance)? Who establishes the "risk paradigm"? How does theorganization efficiently and effectively allocate preciousresources - time, people, management attention, and capital? How issuccess measured? This book is both technically powerful andeffectively realistic, based on today's complex global economy.

Product Details

ISBN-13: 9780470424964
Publisher: Wiley
Publication date: 11/02/2009
Pages: 320
Product dimensions: 6.42(w) x 9.30(h) x 1.12(d)

About the Author

GARY S. LYNCH, CISSP, is an Author, Managing Director and Global Leader of Marsh's Supply Chain Risk Management Practice. He has contributed to the World Economic Forum (WEF) Global Risks Report, been a speaker on pressing global business risk issues for organizations such as Asia Pacific Economic Cooperation (APEC/Singapore & Australia), Risk and Insurance Management Society (RIMS), the World Customs Organization (WCO/Brussels), and The Wharton School, Center for Risk Management and Decision Processes. He also leads Marsh's Global Pandemic Response Center. He works as a management consultant, specializing in helping senior executives solve complex business risk issues. He has developed critical thought leadership and solutions around emerging risk issues, including supply chain risk management and financing, information protection strategies and schemes, value chain risk strategies, cyber/IT-risk, business resiliency and continuity, and pandemic preparedness. He is internationally recognized and has held executive operational and IT risk positions at Booz Allen Hamilton, Chase, Prudential, and Ernst & Young. He is a pioneer in helping companies use his leading-edge methodology to transform their risk management programs. Gary is the author of At Your Own Risk (Wiley) and has appeared on NBC Nightly News, Bloomberg TV, ABC, and CNBC, and has been published in CEO Magazine, Shanghai Business Review, and CIO Insights.

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Table of Contents

About the Author xi

Preface xiii

Acknowledgments xvii

Introduction Getting to the Truth 1

Chapter 1 The Laws of the Laws 9

Laws of the Laws

Risk Management Defined

Law of the Laws #1: Everyone, without Exception, Is Part of a Supply Chain

Law of the Laws #2: No Risk Strategy Is a Substitute for Bad Decisions and a Lack of Risk Consciousness

Law of the Laws #3: It’s All in the Details

Law of the Laws #4: People Always Operate from Self-Interest

Indirect and Secondary Impacts

What Can You Conclude?

Notes

Chapter 2 Law #1: If You Don’t Manage and Lead Change, You Have to Surrender to It 31

The Risk Wake - Up Call — Planned Change, Unplanned Consequences

We Can’t Change the Past, but . . . Can We Change the Future?

Can You See the Icebergs Ahead?

Notes

Chapter 3 Law #2: The Paradigm Should Destroy the Parasite: Begin by Defining the Paradigm, Not by Fighting the Parasite 61

The Paradigm in Action

Why Does the Organization Need to Identify a Supply Chain Risk Paradigm?

Beware! The Paradigm Can Shift without Notice

If the Shoe Fits

Notes

Chapter 4 Law #3: Manage Your Business DNA in a Petri Dish of Evolving Risk 87

Expanding the Risk Awareness Universe

Know Your Business—Know Your Surroundings

The Keys to Your Risk Kingdom

Your Operation’s Complete Footprint

Your Action Plan

Notes

Chapter 5 Law #4: In Supply Chain Risk Management, Demand Trumps Supply 115

Everyone’s Customer

Building Your Demand-Based Strategy

Market and Client Factors to Consider

Notes

Chapter 6 Law #5: Never Set Up Your Suppliers for Failure 143

Supply Chain Risk Management Program

Sourcing Strategies That Create More Risk, Not Less

Trust but Verify

Notes

Chapter 7 Law #6: Managing Production Risk Is a Dirty Job: Focus on Managing the Endless Risk of Manufactured Weakest Links 173

Going Global with the Production of Risk

A New Collaborative Effort

Why Is Production So Critical?

Part Two of the Double Whammy: Labor

Notes

Chapter 8 Law #7: The Logistics Risk Management Rule: Managing the Parts Does Not Equal Managing the Whole 199

What Is Logistics Risk?

Cargo and Warehouse Theft

The Piracy Risk

What’s at Risk?

Single Points of Failure and Aggregate Risk

Supply Chains Don’t Survive on Product Flows Alone; Information Flows Are Essential

In the End It’s All about the Priorities and Economics

Notes

Chapter 9 Law #8: Mitigation: If Supply Chain Risk Management Isn’t Part of the Solution, It Will Become the Problem 225

Now What Do I Do?

Enter the Risk Intelligent Supply Chain

Economic Change—A Catalyst for Redefining Resiliency Management

Predisruption

At Time of Disruption

Postdisruption

What Is Risk Mitigation?

Notes

Chapter 10 Law #9: Financing: The Best Policy Is Knowing What’s in Your Policy 249

Insurance and Its Role in Supply Chain Risk Management

Background on Insurance in the Supply Chain Risk Area

Current Insurance Solutions and Their Limitations

Introducing Supply Chain Insurance: Approach and Challenges

Corporate Customer Benefits Arising from Supply Chain Insurance

Conclusions

What Does the Future Hold?

A View from the Insurer’s Side

Notes

Chapter 11 Law #10: Manage the Risk as You Manage Your Own: Your Supply Chains Are All Interdependent but Unique 279

Questioning Old Assumptions

Personal Laws of the Laws

Index 287

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Single Point of Failure: The Ten Essential Laws of Supply Chain Risk Management 5 out of 5 based on 0 ratings. 2 reviews.
RolfDobelli More than 1 year ago
The captain of the Titanic ignored at least five warnings that unusual conditions in the Gulf Stream made it dangerous to steam at high speeds through the North Atlantic – if only he had paid attention. CEOs usually don’t seek or receive advance alerts of the looming icebergs that could affect their supply chains, the interconnected links that enable companies to move raw materials to production facilities and thence to customers. Now, you can be prepared, thanks to supply chain risk management expert Gary S. Lynch, who details the 10 best ways to manage and mitigate supply chain risk. getAbstract recommends his insights – despite a peppering of jargon – to executives handling all aspects of corporate life, including risk, manufacturing, compliance, operations, logistics, outsourcing, procurement and security.
Anonymous More than 1 year ago