The position of Supply Chain Analytics in Mitigating risks

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Supply chains have become more complex, especially those in industries such as consumer products, energy, and high tech that typically handle large volumes on a global scale. This complexity requires greater sophistication in terms of identifying and addressing risks.

A number of analytical tools have been developed to mitigate or perhaps reduce the risks in supply chain. This ranges from the orthodox predictive modelling to risk sensing data, which is practically used by multi-national corporation (MNC) today in forecasting and preventing supply chain risks, as well as driving more proactive management of supply chain risk. There are other analytical tools used for evaluating supply chain risks which includes; worse-case scenario modelling, business simulation, financial risk modelling, supply chain operational modelling Etc.

The figure below shows various analytical tools in supply chain risk management and their popularity among business executives in proactively addressing supply chain risks.

Types of data/visualization/analytical tools used to manage risk in supply chain

Source: Deloitte Consulting, 2012

 

 

 

 

 

 

 

 

 

Logistics Infrastructure Competitiveness

Logistics and supply chain infrastructure capacity in Nigeria has been dismal. The poor performance of supply chain infrastructure can be attributed to general level of infrastructure decay in the country. For instance the pipeline transport is largely

underdeveloped and limited to crude oil transportation only, while the water transport is virtually inexistent, except in Enugu state where the relics of old water infrastructure still exists. Nigeria is currently ranked 130th of 144 Nations in infrastructural development.

Nigeria’s Global competitiveness index: Infrastructure

2006 2007 2008 2009 2010 2011 2012
Infrastructure 2.42 2.20 2.24 2.29 2.02 2.21 2.28
Quality of overall infrastructure 2.63 2.35 2.38 2.43 2.42 3.03 3.23
Quality of roads 2.41 2.21 2.32 2.55 2.39 2.72 2.77
Quality of rail infrastructure 1.58 1.89
Quality of port infrastructure 3.05 2.69 2.62 2.80 2.98 3.31 3.55
Quality of air transport 3.91 3.54 4.22 4.35 3.88 3.85 4.00
Quality of electric supply 1.93 1.69 1.56 1.46 1.34 1.45 1.61

The table above describes Nigeria’s competitiveness index in terms of infrastructure and development with scores being measured from 1 to 7, with 1 being the worst performance and 7 the best. It is safe to assume that a minimum benchmark should be 3.5 so as to focus on indicators which are below this value.it can easily be seen that Nigeria performed terribly below the benchmark in most of the indexes except that air transport that has enjoyed modest scores since 2006.However across Nigeria’s infrastructure continuum are evidences of neglect and the air transport industry is not completely exempted.

Thanks for reading.

Next time we will begin another topic on Supply Chain Management Practices

 

 

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