Question
Please answer the following question using rhe included story/information below: Name a few track and trace capabilities that could assist VEN temp. detction problems and
David thought back to his first job. He'd been working for United Technologies in Monterrey, Mexico for six months when the economy ran into some stiff headwinds. The result: UTC went through one of those "mandatory, across-the-board" layoffsand he lacked seniority. In the morning he had gotten a pink slip. But his boss, Jackson Fults, had said, "Don't worry." Pink slip in hand, David had found that comment more than a little strange. By midafternoon, Jackson had come by to tell David that Jackson had "found" another slot for him. Only later did Jackson explain that David's work ethic and performance made him indispensable. David had worked for UTC another four years before joining Olympus.
Refocusing on the task at hand, David started up the stairs to the fourth floor conference roomand the latte machine. He had scheduled a big task force meeting for Monday, and he was planning something a little unusual. He wanted to make sure that everything came off without a hitch. As David stepped out of the stairwell, he saw light shining from the conference room. "That's odd," he said softly, "It's not even 7:15. Who could be here at this hour?" He had only come in early so that he could take his kids to the big game later that day.
As David approached the conference room, he heard Emily's voice. "Didn't she ever stop working?" he thought. Stepping into the doorway, he smiled and said, "Good morning, Emily." Seeing Susan Maas, Olympus' Director of Global Sourcing, seated at the conference table with Emily, David said, "Hi, Susan. What brings you two power players to the office on a beautiful fall day like today?" It was then that David glanced at the whiteboard and saw the timeline. He paused briefly and asked, "It looks like you two are planning for the end of the world?
Emily and Susan both smiled. Emily spoke first, "Good morning, David. You're pretty close to right. Susan and I crossed paths earlier in the week. After she told me about a couple of challenges she ran into over in purchasing, she shared a copy of the book, End of the Line, with me. Susan mentioned that the COVID pandemic had proven the author's dire predictions about global supply chains prophetic. This morning was the only time we could get together to talk about it."
Susan chimed in, "Good morning David. Sorry to see you giving up a Saturday morning to come into the office. I'm guessing we're all here for the same reason: To see if we can figure out how to deal with supply chain risk."
At first, David wasn't sure he knew what Susan was talking about. Susan saw the baffled look on David's face, and said, "I hear you're leading the order-fulfillment task force. That delivery glitch you suffered with Goliath fits into what we over in sourcing are labeling as an operational risk."
David saw where she was going, replying, "You know, I never thought about it that way, but you're right. Dropping the baton with Goliath was unexpected and costly. It's the kind of thing that causes me to lose sleep because it seems like we don't have control over all the different things that can go wrong. That does sound like risk management."
"David, please sit down and join us for a few minutes," Emily said. "Susan, why don't you tell David what is going on over in sourcing. Do you have a few minutes, David?"
"Sure. If it's not a bother, I'd love to join your discussionbut just for a few minutes," David said.
"Well, David, let me quickly get you up to speed," Susan started. "About six months ago, Doug Hassle asked us to put together a sourcing plan for a new hazelnut-based chocolate spread. You know, something to compete with Nutella. Not long after we started the commodity study, it seemed the timing was not good to get into this market. Hazelnut prices were skyrocketing, and a hazelnut blight was threatening future harvests. Since we didn't have any supplier relationships in place, we'd never be able to assure supplyat least not at a competitive price."
"Hazelnuts were the second crop for which we ran into a supply problem that has derailed a product launch. Have you ever heard of Peruvian Maca root?" Seeing a blank expression on both Emily and David's faces, Susan continued. "Neither had I. Doug said it is the new super fruit. Marketing was planning to use Maca as an additive to a new protein sports drink. But Chinese buyers had flooded Peru, buying up future supply. We couldn't touch Maca root at a price that would make the sports drink viable in the market,' Susan paused.
Sighing, Susan continured, "Tension has been growing between marketing and us because we haven't been able to support their new product plans. These two events opened our eyes to the need to get serious about supply risks. More importantly, we need to figure out how to manage risks across functions. A sourcing-driven risk-mitigation strategy just won't get the job done."
"Wow," David sighed. "It does look like we are going down the same pathat least regarding the need to manage risks across functions. But, you know, we're really not that good at managing risks in our own little world of logistics."
Emily smiled, and said, "Nobody is. Take a look at the other whiteboard. The statistics are dismal. Now you know why we're here on a Saturday morning. David, you're dealing with an operational risk. My concern is with the black-swan risks.
"As COVID so painfully pointed out, black-swan events can stop the world. The pandemic really hurt our customers, and it impacted our suppliers as well. Imagine what might have happened if we weren't considered an essential industry. We survived COVID, but black-swan events seem to be happening more frequently these days. From geopolitical rivalry to infectious diseases to open war, we now have to expect the unexpected. Our global supply chains are vulnerable.
"When the next black swan takes flight, will we do better? Will our supply chains be better prepared? Will governments be more quick to respond and more flexible as the threat unfolds? I have my doubts, but one fact seems clear: Between the operational risks you guys are dealing with and the unexpected black swans, we have our work cut out for us."
The discussion was just beginning.
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