This large consumer packaged goods firm wanted to understand their current level of disruption risk and how to become more resilient. They needed a model to quantitatively understand the impact of disruptions in one of their supply chains.
How did CTL address the problem?
CTL approached this in two phases.
In phase 1, we surveyed management to develop a qualitative understanding of the firm’s comfort with and approach to risk.
In phase 2, we collected data on the occurrence and impact of disruptions in a representative supply chain and developed a large-scale simulation model of the network. That model became a “proof of concept” to quantify the risks facing the firm’s supply chains. It showed the hardest-hitting types of risk as well as the existing gaps in proactive planning.
What were the results and impact on the company?
The results generated two new strategic projects to drive the firm to consider risk more proactively. One project seeks to develop business continuity planning across supply chains, as opposed to within individual facilities. The other seeks to incorporate the analysis of risk factors when designing new supply chains for new products.