News Article:
The news article entitled “Command and Control: Managing Supply Chain Risk” written by the Deloitte Risk Journal Editor and published online in The Wall Street Journal presented relevant concerns regarding managing risks encountered in contemporary times as posed by external factors. As disclosed, various incidences of natural disasters, like typhoons and floods significantly disrupt supply chain management in various organizations which are affected by them. The author initially discussed effects sustained in an electronics organization in Malaysia that was affected by a severe typhoon which necessitated the closure of the supplies assembly lines. The impact on business organizations that relied on these electronic components was allegedly the subject of urgent concern for supply chain managers who had to search for alternative sources of components at the soonest possible time. Likewise, the effect of Storm Sandy which besieged various parts of the United States also created devastating impact on supply chain management and disrupted continued operations of regular clientele. It was evidently reported that the disruptions in supply chain created a devastating impact on both shareholder value; as well as on overall business performance . Likewise, the research conducted by Deloitte apparently revealed that disruptions on supply chain management also impact on erosion of margin and negatively affects the corporate image due to the perceived inability to meet the demand.
The concepts discussed and presented in the article are directly related to the course module on control processes and systems. For instance, organizations that experienced adverse disruptions in the supply chain management have clearly applied control processes, as enumerated in the chapter. Through the four steps in the control process (establishment of performance standards and objectives; measuring actual performance; comparing actual with standards; and taking corrective action), organizations are able to design improved ways to mitigate the identified risks. For instance, in the article, the risk or threat that disrupts the supply chain management was the increasing incidences of natural disasters (due to climate change). As such, the organizations which have presumably set standards or goals for meeting the required demand or volume of components, products to be delivered to customers, would appropriately identify how many units were not delivered on time due to these natural disasters.
As such, through comparing actual performance against standards, these organizations have apparently designed the recommended tools to improve supply chain management and control. Thus, an important part of control is instituting corrective measures to address the deviance. For instance, through the mapping and risk visualization tools, supply chain managers would specifically identify vulnerable areas of natural disasters and immediately detail alternative courses of action: identify other sources of the components which could immediately be tapped to address inability to deliver; and therefore, would not disrupt schedule deliveries to their clientele.
My Contribution:
One is convinced that the concepts learned in the control processes and systems module is significant in any endeavor; particularly within an organizational setting to determine whether the goals or standards set have been effectively achieved. The level and extent of achievement should be measured in terms of effective use of resources with the most minimum costs. Only then could profits be duly maximized. Thus, the concept learned enhanced one’s understanding that an important function in management, apart from planning, directing, and organizing, is the control function. This particular function enables managers to identify any source/s of deviation from plans and therefore, initiates them to re-evaluate strategies needed to but resources back on course toward the achievement of identified goals.
Likewise, the concepts and applications impact me personally through being more cognizant of the fact that control measures are relevant in various facets of life. On a personal basis, control measures and techniques which are learned provided me with tools which would guide me in determining the rate of progress and performance. Thus, when there are internal or external factors that significantly affect established objectives or goals, these give me the indication that there should be corrective actions that must be instituted to bring me back to the appropriate course and direction that was originally set. Also, through learning the importance of control measures, the types of control, the control process, as well as control tools and techniques, I became more aware of actions that actually assist towards the attainment of goals; versus actions or activities that actually detract or disrupt needed fulfillment. The theories learned, and the applications of these theories in actual settings assisted in one’s appreciation of the functions of managers and the need to effectively achieve set goals.
Work Cited
Deloitte Risk Journal Editor. "Command and Control: Managing Supply Chain Risk." 6 June 2013. The Wall Street Journal. http://deloitte.wsj.com/riskandcompliance/2013/06/06/command-and-control-managing-supply-chain-risk/. 9 June 2013.
