Strikes and security factors

Some of the potentials for supply chain disruption are common — security issues and strikes — but many are within the control of companies themselves. The challenge is for companies to manage investments in their supply chain and their outsourcing strategy so that they are aware of the risks and take every effort to mitigate these risks.

It is now a recognised fact that supply chain investments and initiatives should be undertaken in many instances not because they reduce cost but because they increase the reliability and responsiveness of supply chain efficiency.

Managers have a responsibility to their customers, to their employees and their shareholders but nowadays there is a much clearer focus on how managements discharge their responsibilities.

Supply chains affect almost every aspect of a business and a significant failure within the supply chain can have a devastating financial impact on a business. Therefore companies should install supply chain management as an integral element of their board meetings.

Unfortunately this is still not the case for many companies and as a result the supply chain/logistics teams do not have the necessary support within the company. Too often it is all about cost reduction, cost reduction and cost reduction.

Companies that have a clear focus on developing a superior supply chain also perform significantly better for their customers, their
employees and for their shareholders.

— Michael Profitt is the Chief Executive Officer of Dubai Logistics City (DLC).