As the world’s fastest-growing procurement and supply chain event, Procurement & Supply Chain LIVE 2023 was a disruptive learning and networking event that showcased some of the industry’s top speakers across innovation, thought leadership and strategy.
The Supply Chain Risk & Resilience Forum
Speaking at Procurement & Supply LIVE 2023, executives from Novartis, HF&C, and Capgemini Invent deep dive into supply chain risk and resilience.
- Cameron Smith, Global Procurement Senior Partner - Indirect Procurement at Novartis
- Aurelien Faucheux, CEO at HF&C
- Ashley Naughton, Senior Director of Intelligent Supply Chain and Procurement, Capgemini Invent
Critical supply chain risks for businesses
Emphasising the need to quantify risks specific to each business and sector, Naughton and Smith begin this forum by highlighting the importance of understanding known and unknown risks, particularly when it comes to emerging issues such as ESG and diversity. Faucheux shines a light on the cruciality of external (geopolitical, materials) and internal risks (credit ratings, financials) for the automotive industry.
“Risk really needs to be quantified in terms of risk themes. Risk themes are different for each type of business in each sector,” says Naughton.
“Geopolitical, health, pandemic, energy, ESG, diversity – nothing is off the table for supply chain risks,” adds Smith.
When it comes to mitigating such risks, the three stress the importance of having plans and then having backup plans too considering the frequency and severity of change. The importance of communication and explaining risks and their consequences to stakeholders was also a key discussion point.
The role of technology in risk management
Shifting the discussion to the interpretation of and use of data, smith notes the need for a subjective overlay on objective data, emphasising the importance of interpreting data correctly. Additionally, Faucheux advocates for a ‘back-to-basics’ approach to ensure a fundamental understanding of the supply chain.
“Back to basics first, and then you can speak about AI and the rest of digitisation, but the basics have to be right,” says Faucheux.
Naughton suggests negotiation and technology as approaches to collect data as well as acknowledging the increasing prominence of AI and automation in managing large volumes of information, but doesn’t discredit the importance of the human element.
Faucheux highlights the need for procurement and supply chain collaboration and leveraging automation to understand and prevent risks, he also sees a growing reliance on AI, especially in monitoring and assessing worst-case scenarios.
To watch any of our other speakers from Procurement & Supply Chain LIVE 2023, click here.
Celebrating exemplary achievements in the fields of procurement and supply chain management, the Supply Chain AWARDS - debuting in 2024 - acknowledges companies, professionals, and projects that demonstrate exceptional performance, innovation, and strategic thinking. Click here, to find out how you can enter.
For more insights into the world of supply chain read the latest edition of Supply Chain Digital and be sure to follow us on LinkedIn & Twitter. Other magazines that may be of interest: Procurement Magazine, Manufacturing Digital
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