Managing Automation - March 2009 - (Page 24)

DEEPDIVE SupplyChains–TechnologyDirections TOOLS for Managing Risk Manufacturers won’t find many comprehensive software suites for managing all aspects of supply chain risk. But they will find a growing list of useful point-solutions. BY JEFF MOAD here’s little doubt that technology has a role to play in helping manufacturers identify supply chain risk, recognize when risk is on the rise, and mitigate the effects of that risk. In fact, according to a new poll of Managing Automation readers, 60% of manufacturers said technology would play a pivotal or somewhat important role in their companies’ efforts to mitigate supply chain risk. Despite that expectation, however, there are few, if any, comprehensive, integrated tool suites that manufacturers can use to identify risks, recognize when supply chain risk is on the rise, and manage the ramifications. Instead, experts say, manufacturers can implement a wide variety of tools that focus on one aspect or another of supply chain risk management, including risk-based early-warning systems, supplier assessment, network simulation and optimization, inventory visibility, and supply execution flexibility. “Supply chain risk management is a nas- cent market right now,” says Noha Tohamy, an analyst at AMR Research. “Every vendor says their tool can be applied to problems related to supply chain risk, but right now there are very few comprehensive tools that, for example, can quantify risk as a cost factor and incorporate that into existing models.” Still, many vendors have begun to deliver tools that can be applied to pieces of the supply chain risk management puzzle. Vendors such as SAP, IBM/Cognos, and Sterling Commerce are combining business intelligence (BI) and event management software to create early-warning systems that can alert manufacturers when their supply networks are about to run into problems. SAP’s suite of Government, Risk, and Compliance products, for example, includes SAP Business Objects Risk Management, which lets manufacturers identify key risk indicators (KRIs). Companies concerned about global trade risk, for example, might decide that customs dwell times of over 24 hours or blocked shipments above a certain percentage are indicative of rising risk levels. Using SAP’s Busi- ma March 24 2009 Photo: James Richey

Table of Contents Feed for the Digital Edition of Managing Automation - March 2009

Managing Automation - March 2009 Contents Take 1 Sober Outlook, Cost-Cutting Techniques Dominate at Automation Conference Sale Canceled, i2 Searches for Its Focus Accenture Unveils a Service for the Factory Floor Solar Is Bright Spot for MES Player Eyelit Other Industries Outspent Auto on Robots in 2008 Integrators to Play a Bigger Role at ILS Technology Notes Deep Dive Supply Chains Reader Poll Technology Directions Expert Q&A User Resources Special Report Transformation Product Scan Advertiser Index Next

Managing Automation - March 2009

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