Supply chain risk-management management moves to the front burner
This is an era where Big Data has become a buzzword beyond the IT profession.
The term has a precise meaning for IT folks, who have at least heard of Hadoop. But in the broader world, it has come to signify the rise of quants as a business necessity. Moneyball is a great example. Shane Battier's approach to defense is another. The rise of Nate Silver is perhaps the best example right now.
This brings me to the supply chain. The odd weather patterns that have wreaked havoc around the globe in recent years have translated into heightened risk at the supply chain level. A commentary in a Harvard Business Review blog posting makes the case that supply chain risk managers ought to be relying more on quantitative techniques.
The post notes that, "CEOs and CFOs should consider rethinking who is managing risk in their global supply chains. A literal revolution should be considered in the field of supply chain risk management. The good news is that it is coming, little by little, as leading thinkers in industry, academics and the insurance/risk industry itself rethink this topic from top to bottom. Many leading companies are already moving in this direction, adding finance PhD's and actuaries to procurement and supply chain teams. This new generation of risk leaders has an opportunity to transform the discipline of supply chain risk management from a reactive planning exercise to a day-to-day operational function. This is a strategic shift; insightful CEOs will move their companies in the same direction now rather than in years to come."
I'm confident the consultants are ramping up solution offerings.
- here' the article
Quants still ascending