Organizations should use technologies such as Kinaxis, E2open, Llamasoft, or Simio to rapidly model the supply chain network with key data characteristics for each supply chain node. The focus should be to quickly develop a simulation model that allows for analysis of specific risk scenarios and development of actionable insights.
Risk scenarios include the potential loss of supplier capacity for 30, 60, or 90 days; 20%, 33%, or 50% additional transportation time for critical lanes; and the associated impact on customer-order fulfillment, or any specific business outcomes. These assessments will identify and prioritize the key risks and scenarios that the crisis-management team should focus on.
Over the past few weeks, we've run scenario analysis for a high-tech manufacturer of storage devices that simulated the loss of production capacity for key suppliers for 30-60-90 days. This has prioritized risk scenarios and triggered a series of supplier engagement actions to enable continuity of supply.