MENLO PARK, CALIF. (August 8, 2023) – Corporations are facing an increase in supply chain risk from both internal and external factors. Internally, as supply chains become more complex and outsourced, visibility to physical risk has decreased with existing supply chain management (SCM) technologies, especially when considering dependency risk to suppliers. Moreover, in certain industries, vital raw materials, parts, and production processes are concentrated in specific regions that are especially prone to disruption. Externally, the coupled threats of natural disasters and climate change lead to increases in disruption.
Why it matters: Many supply change management software utilizes real-time information to ensure that suppliers, transportation networks, and logistics providers operate seamlessly or, in the case of disruption, alternatives are easily identified, and decisions can be made quickly to lessen downstream disruption implications. Supply chain management strategies are, however, missing key insights into supplier vulnerability that are critical to pre-event risk reduction.
One Concern’s downtime and resilience statistics quantify the physical risk (and the associated probability) of natural disasters and climate change on supplier networks, and incorporating these data points into initial strategies and planning allows managers to reduce disruption risk before it occurs. Supply chain managers gain valuable insight into the direct and indirect impacts of natural disasters/climate change on infrastructure, such as roads/bridges and power networks that are critical to business operations and network/logistics flow.
Zoom in: A natural disaster such as a hurricane, flood, or earthquake, can cause substantial disruption to suppliers and the infrastructure they depend on. What if you knew before the event which suppliers and the infrastructure components they rely on are more/less resilient to a flash flood or earthquake? Any sustainable and resilient supply chain is focused on cost reduction, efficient movement of goods/services, and risk mitigation that sustains and promotes revenue growth and profitability, stressing the need for valuable planning tools and data like One Concern’s downtime statistics.
Our 1CRX™ resilience score allows supply chain managers to examine their supplier network(s) and determine their resilience (and the resilience of alternative suppliers) to these events. They can dig deeper into using our 1CDS™ and 1CEP™ downtime and probability metrics to see which supplier facilities are most at-risk and to what infrastructure impairment, such as individual road and bridge segments or power substations. Supply chain managers can then act on the key drivers of supplier vulnerability risk, whether it’s used to source new/alternative suppliers or to work with existing ones on mitigation strategies. Businesses can generate comprehensive ‘what-if’ scenarios for their planning process using medium and extreme scenarios. .
What’s next: Supply chain managers require the 1CRX™ Resilience Score and 1CDS™ downtime metrics, to measure business impairment due to physical risk, to bolster their supply chain management strategy. Business downtime data from One Concern empowers decision-makers in the supply chain management space to make informed supplier investment choices, develop effective risk management strategies, and ensure their bottom line is mitigated against supplier disruption. Want to learn more? Reach out at firstname.lastname@example.org.
About One Concern
At One Concern, we are a climate resilience technology company dedicated to empowering organizations with actionable insights to address the impacts of business disruption caused by disasters. Through our analytics, we enable risk selection, mitigation, pricing, scenario analysis, and risk management. Our mission is to make disasters less disastrous by helping organizations understand and prepare for downtime from physical climate risks. We are committed to providing the world with the tools needed to effectively mitigate and manage downtime from such risks. Learn more about us at oneconcern.com.