Risk Management in Logistics

While welcoming today's announcement regarding the temporary tariff structure between the U.S. and China I was reminded that this can have significant implications on global supply chain security. The team at Overhaul conducted a quick risk assessment based on the latest news, highlighting the following key points: - The Backlog Effect: With the resumption of significant volumes of cargo movement, there may be surges at major ports, high congestion in distribution centers, and limited transport capacity due to the clearance of previously stalled cargo. - A Prime Window for Cargo Criminals: The period of instability creates opportunities for supply chain crime, with vulnerabilities such as unattended containers, last-minute rerouting, and increased use of under-vetted carriers. - High-Value Targets: Items like semiconductors, AI hardware, EV batteries, medical devices, and luxury goods are at risk of being targeted by criminal networks for theft and fraud. - What to Watch in the Next 30–90 Days: Expect spikes in cargo thefts along re-entry corridors, fraudulent forwarding and brokerage scams, and an increase in cyber-attacks targeting cargo tracking tools. Overhaul recommends the following measures to address the operational risks: - Review SOPs for delayed cargo release and verify carrier credentials. - Implement dual-authentication processes for pickups. - Utilize IoT tracking devices for high-value loads. - Monitor open-source intelligence and dark web activity around major port releases. In summary, while the tariff reduction brings relief, it also poses operational risks. Logistics leaders are advised to approach the next 30 days as a high-risk transition period, emphasizing visibility, verification, and deterrence to combat potential theft, fraud, and infiltration by criminal groups. Overhaul

In today's unpredictable VUCA (volatility, uncertainty, complexity, ambiguity) environment, supply chain resilience is vital. Global disruptions like pandemics, geopolitical tensions, and natural disasters have revealed the weaknesses in traditional supply chains. At Lenovo, resilience means not just surviving these challenges but emerging stronger. We've developed a white paper detailing the strategies that helped us build a robust and reliable supply chain, earning us a spot in the Gartner Supply Chain Top 10 for 2023. Here’s our approach to achieving operational continuity and customer satisfaction: 🌐 Multi-Sourcing: Diversifying our supplier base to avoid dependence on a single source for critical components. 🏭 Hybrid Manufacturing: Integrating local manufacturing to enhance flexibility and responsiveness. 🛡️ Proactive Risk Management: Implementing comprehensive risk assessment and mitigation plans. 📊 Supply Chain Risk Management Model: Using a structured approach to identify, assess, and manage risks. 🔄 Continuous Improvement: Regular audits and enhancements to maintain and improve supply chain resilience. These proactive risk management strategies ensure continuity and build customer trust, keeping us ahead of potential disruptions. Interested in learning more? I've linked our Global Supply Chain Security white paper in the comments. 👇 #WeAreLenovo #SupplyChain #Resilience #RiskManagement #Innovation

The recent operation targeting Hezbollah electronic devices has brought the topic of Supply Chain Risk Management (SCRM) to the forefront of intelligence and security conversations. Supply chain risk management refers to the process by which businesses take strategic steps to identify, assess, and mitigate risks within their end-to-end supply chain. Logistics professionals tend to view this topic from the standpoint of internal or external risks, such as demand, supply, materials, manufacturing, transport or other business risks. Intelligence professionals view this in terms of threats, such as the adulteration of the supply chain by adversaries, for the purposes of intelligence gathering, degrading capabilities, providing an asymmetric technology advantage, etc. Effective supply chain risk management involves identifying and ranking potential risks, developing mitigation strategies, and implementing processes to track and respond to potential disruptions. It also involves continuously monitoring and updating risk assessments to ensure the supply chain remains resilient and adaptable to changing circumstances. Corporate intelligence teams can greatly contribute to these activities, especially as it relates to detecting leading indicators of potential disruptions, supporting vetting of third party suppliers, understanding the threat landscape, and tracking potential risks over the long term. If you are a corporate intelligence practitioner and are wondering where to start with something like this, I have a few suggestions: -Identify and reach out to those responsible for supply chain operations and activities in your company. They are a wealth of knowledge, and may not be familiar with the types of support your team can provide. -Take the time to understand your organization's supply chain, and do the analysis. What are the major lines of business? What are the key nodes/modes? How would you know if there was a problem with any of these? -Be a part of the conversation around Prevention, Preparedness, Response and Recovery (PRRR or PR3). How can the corporate intelligence team contribute to each of the parts of the risk management model your company uses? -Network internally to become aware of the roles others currently have or may potentially play in securing your company's supply chain. None of us is as smart or effective as all of us, and a cross-functional approach is more likely to address issues holistically than a siloed approach. Current events have brought this topic to the fore, but in truth SCRM is fundamental to protecting your organization and its operations. Proper supply chain risk management practices, using all of the tools available, can enable businesses of all shapes and sizes to operate effectively and profitably.

AI is transforming supply chain risk management. What used to take weeks: - Identifying risks - Analyzing data - Making decisions Can now happen in real time. Here’s how AI is reshaping the game: - Predictive Analytics AI models analyze vast amounts of data to forecast potential disruptions before they happen. - Real-Time Monitoring Sensors and AI tools provide 24/7 visibility, flagging risks as they emerge. - Scenario Planning Simulations powered by AI allow companies to test “what if” scenarios and prepare for the unexpected. - Dynamic Risk Scoring AI continuously evaluates risks based on changing conditions, helping prioritize where to focus resources. - Automation Routine tasks like supplier audits or compliance checks can now run autonomously, freeing up teams for strategic decisions. But here’s the challenge: AI isn’t a magic bullet. It’s only as good as the data and processes behind it. The companies that succeed will: - Invest in high-quality, integrated data systems. - Build teams that understand both supply chain risks and AI tools. - Blend human expertise with AI-driven insights for better decisions. The future of supply chain risk management isn’t just smarter. It’s faster and more proactive. Are you ready for what’s next?