Provider says analysis becoming key to supply chain resilience, corporate risk analysis and Sarbanes-Oxley compliance
Manassas, VA — March 3, 2006 — INSIGHT, Inc., an international provider of planning solutions, announced that it is now offering functionality extensions that enable a series of analyses designed to uncover and mitigate vulnerabilities in the supply chain.
INSIGHT's supply chain vulnerability/hardening analysis solution facilitates the identification of vulnerable components of the supply chain, a critical issue for contemporary firms, said Jeffrey Karrenbauer, president of INSIGHT, Inc. Equally important, it then identifies the optimal design or designs and the associated costs best able to mitigate these risks.
Karrenbauer said the recent attempted attack on the Abqaiq facility in Saudi Arabia, through which fully 8 percent of the world's oil supply passes, is a compelling example of why this issue is so pressing.
Every CEO, chief operating officer and chief financial officer should be demanding a comprehensive supply chain risk audit and a corresponding set of mitigation strategies immediately, not waiting for a successful attack, pandemic or another natural disaster, he stated.
In the December 2005 issue of Supply Chain Manufacturing and Logistics magazine, Beth Enslow of AberdeenGroup forecasted one trend that will impact supply chain management solution spending in 2006 is the application of risk management to supply chain activities.
The supply chain vulnerability/hardening options of SAILS 21 can be used to design long-term strategies as well as respond to short-term disruptions. They include critical location analysis, critical customer analysis, critical raw material analysis, sufficient capacity analysis, and short-term crisis response analysis.
INSIGHT said it also provides the training, technical assistance, professional services, and strategic design expertise required to support these important analyses.
Executives are increasingly aware that corporate risk has been exacerbated by the hallmarks of globalization: extensive supply chains, worldwide competition, regional instability, changing government regulations, shifting trading blocks, and longer lead times.
In addition, many contemporary supply chains are taut or brittle, meaning that they are vulnerable to disruptions. Unfortunately, INSIGHT said, initiatives to reduce supply chain costs and increase responsiveness, such as facility/capacity elimination, lean logistics and just-in-time (JIT), have intensified the problem.
Indeed, the rush to budget judgment may have placed the enterprise itself at risk, according to INSIGHT. Because of this risk, many knowledgeable observers are predicting that supply chain certification may be required as part of Sarbanes-Oxley compliance. INSIGHT said it offers audit services designed to highlight areas needing improvement.
Additional Articles of Interest
- Imminent terrorist attacks or no, your competitive advantage demands that you secure your company's supply chain. Read more in "Supply Chain Security: Is Your Company Complacent or Engaged?," in the February/March 2005 issue of Supply & Demand Chain Executive.
- Making Global Supply Chains Work Supply and demand chain practitioners take on the challenges and opportunities of world marketplace.
- The Hidden Costs of a Global Supply & Demand Chain - Veteran industry observers warn of potential hidden costs of offshoring.
- Mastering the Complexity Challenge in the Global Supply Chain - While many companies are acting globally, they are still thinking locally.
- Ensuring Security of Supply in the Lean Supply Chain - Balancing the demands of security with the requirements of today's lean supply chains
- The World Is Enough - Making the global high-tech supply chain more accessible.
For a look at how Tyco Fire & Security is tackling trade compliance issues in its global supply chain, see "Turning Global Trade Compliance Into a Competitive Advantage," in the August/September 2004 issue of Supply & Demand Chain Executive.
For more information on the challenges and opportunities presented by increasingly global supply chains, see the special in-depth report in the August/September 2004 issue of Supply & Demand Chain Executive, which includes the following articles:
