Automatic Risk Analysis
One of the major functions of every corporation is to mitigate risk as much as possible. This is particularly true in the case of supply chain risks. Supply chains are vulnerable to many different factors most of which are outside of the control of the company. Some examples are Acts of God, geopolitical issues and sanctions, supplier and customer uncertainties, safety and ethical issues such as child labor. There is not much that the company can do to prevent such events, however company has control over how to address the problems and mitigate the risk when it happens. Adexa has built-in intelligence to detect points of high risk that make the supply chain vulnerable. Some examples are single source products, low inventory points of key items, lack of alternates for making and delivering, trends of changing demand. Adexa’s planning engines can detect such high risk areas and warn the users. Furthermore, it keeps track of the issues to make sure that the situation is improving or not being addressed.
In addition to above intelligence, Adexa planning applications allow analysis of the possible options and decisions, that are available to the management, if unexpected but inevitable events occur. An example is reduction of capacity of a (say) supplier in Japan because of an earthquake. The system would immediately examine alternate resources, if any, including cost of transportations and cost of goods and display the impact of such event on the financials of the company. Obviously, in case of a single source supplier, or supplier’s supplier, the consequences are not very desirable! However Adexa would provide early warning messages to prevent such situations before they happen. No surprises!
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At Adexa we believe, risk management as related to the supply chain, is a growing concern amongst the best run companies. The main question is what the level of risk is and the associated cost to the company would be, as well as potential lost revenue. And what can be done about it?
» Adexa BLOG – Run Your Supply Chain Like An Insurance Company