Effective supply chain event management is crucial for project managers to prepare for disruptions and improve future event management. Technology and software applications can help manage the entire supply chain as a connected process, with timing rules and backup systems in place to prevent bottlenecks.
Effective supply chain event management is similar to effective supply chain management. The latter is used by operational staff to manage an ongoing supply chain; the first is used by project managers for specific events. Effective supply chain management helps supply chain project managers consider all possible events that could cause a supply chain to fail or bottleneck. A good system can improve financial controls and reduce operational risk.
Supply chain event management is interrelated and coordinated rather than linear as it often is. Instead, it looks at the supply chain as an organization and each transaction as an event. This allows project managers to model supply chain events with simulation analysis, which can help improve event management in the future. This is especially true for emergency planning scenarios.
Event management involves assessing and preparing for disruptions in the supply chain process. It also includes developing alternative action plans should a bottleneck or problem occur with a specific supplier. In this way, it is similar to supply chain emergency planning.
Common supply chain events include selecting a new supplier or implementing a new supply chain solution. If not properly planned for, these events can have devastating effects on a company’s ability to meet customer demand. Failure to meet demand is a supply chain manager’s nightmare, which is why good event management is necessary for business success.
One way for supply chain managers to keep track of the entire supply chain is with technology and software applications that help manage inventory, order fulfillment and delivery. The aim is to manage the entire supply chain as a connected process. That is, as inventory decreases, the supply chain systems in place help provide an automatic alert, which triggers the order process. In the same vein, when a customer places an order, the system provides an automatic alert to trigger the order delivery and delivery process.
The backbone of a successful supply chain event management system is time. Each event failure triggers an alert which is facilitated by a set of timing rules. If one of the triggers fails, a backup system will help monitor the overall event and notify supply chain managers before the bottleneck or other issue gets out of hand.
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