There are two types of people: those who allow risks to paralyze them and those who acknowledge risks and continue on their path regardless. Here at Dolven Enterprises, we are on a journey to discover the most efficient way to utilize the global supply chain. Despite the many risks inherent to managing a global supply chain, we continue to push boundaries as we stand true to our belief that growth cannot occur by playing it safe. Dolven categorizes key risks into four groups:
Manufacturing Risks: When manufacturing, despite strict processes, there are always situations where exceptions are required. Usually, there is a process that is followed from the beginning of an order to its fulfillment. However, when dealing with a complex system, especially one on a global scale, controlled flexibility is key. It is important to remember that when exceptions are required, a good company takes the opportunity to build a more robust process and does so with a sense of utmost urgency and delight. Our exception management plan has four simple steps:
- Assess and quantify the root cause
- Determine the customer’s expectations
- Define the cost of options
- Implement the option that minimizes customer’s pain and overall cost
Business Risks: At Dolven, we strive for continuous improvement, which means constant incremental improvements: improvements in personnel through training, improvements in management practices and improvements in internal processes. Because of our desire to constantly explore better and more efficient ways of using the supply chain, we risk certain experiments not working. Dolven uses a constant feedback loop that helps distinguish the processes that work from those that don’t in a timely manner. In short, we TRY to fail faster while maintaining a consistent service to our customers.
Planning Risks: In supply chain management, we understand and deal with the bullwhip effect, which an article on Entrepreneur.com best explained, saying, “Inventory swings in larger and larger “waves” in response to customer demand (the handle of the whip), with the largest “wave” of the whip hitting the supplier of raw materials.” This means there is exponential false demand at the end of the supply chain because of a one-time spike in demand at the head of the supply chain. Dolven is well aware of Supply Chain phenomenons, like the bullwhip effect and the redundant supply sources it causes; we consistently act as the shock absorber through collaborative planning and long-term thinking.
Company Cultural Risks: As we take calculated risks to discover the best way to manage an effective supply chain, mistakes will occur. The distinction between a successful company and an unsuccessful one is determined by the company’s reaction to such unexpected events. Here at Dolven, we know that transparency is key, so we respond immediately should an issue arise and work with our customers to ensure that it is handled in a timely manner and with care.
Warren Buffett once said that risk comes from not knowing what you’re doing, which is why all of our risks are calculated and mitigated. Through flexibility, control, collaboration and visibility, Dolven manages supply chain risks with ease.