A growing global business environment and increasing legislation from oversight agencies means risk management challenges require new solutions, the "Accenture 2013 Global Risk Management Study" found. The study also concluded that many companies are still not satisfied with their risk management agenda, Steve Culp, managing director of Accenture's risk management group, wrote in an article for Forbes.
One way companies in the global supply chain need to address risk management is with increased social responsibility. Adopting social responsibility is one way that companies can close the gap between what executives expect from risk management agendas and what they wind up getting.
Risk management and social responsibility key for supply chains
Manufacturing and distribution organizations are learning that social responsibility is a key component of supply chain management, ensuring that companies keep consumers and the government satisfied. Companies must be aware of where their goods came from and where they are going to mitigate risks associated with a number of political and social issues.
More than ever, consumers are concerned about free trade, conflict minerals and child labor. Tracking merchandise and manufacturing materials throughout the supply chain with automated data collection tools shows an organization's suppliers, retailers and end consumers that corporate responsibility is important to the organization.
How to use automated data collection to its full potential
In the study's conclusion, Accenture recommended that companies focus on insight, not just data and analytics. While data is useful, many companies capture massive amounts of it without any real plan for how to measure it. Data without perspective provides little benefit to companies attempting to build an improved risk management agenda.
For supply chain managers, automated data collection solutions and supply chain management systems that sync directly with current enterprise resource planning software are the best solution. Mobile data collection that tracks products throughout the warehouse and incorporates the data into current systems provides managers far greater insight into the information they are collecting. Connecting the dots of data collection can be tricky, so the more points of collection along the supply chain, the clearer the image.
One of the most beneficial aspects of automated data collection is the ability to gather real-time tracking information related to product manufacturing and logistics. For companies in the food supply chain, this data can greatly increase the speed and success of a government-mandated recall.