Unit 5 Discussion (7)
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“Organizational reliance on the state relies heavily on supply chain resilience, transparency, and
traceability. Blockchain technology and IoT devices significantly increase supply chain channels’
standards in many industries” (Talpur et al., 2023, p. 33). Both blockchain technologies and IoT
devices are used to streamline the process but are at risk for potential outages. Some of the
direct effects of a potential outage would be a lack of transparency in the supply chain and
perhaps negatively impact accountability. With the purpose of these advancements being to
keep a wealth of knowledge in one place, should an outage occur, the supply chain could suffer.
Companies should have a risk mitigation plan in place in the event of technological mishaps.
Some of the factors of technology that present risk are data breaches, web vulnerability,
cyber-crime, and the threat of job loss. A great way for companies to assess the need for
mitigation is to identify what the severity of the risk is and how often it happens. With this
knowledge, leadership can put actionable plans into place to reduce those risks. In the event of
an outage of any kind, companies must be prepared to manage the supply chain in a different
way.
“Different smart supply chain risks may need different risk treatment strategies…risk
mitigation appears most suitable for high probability and low impact risks like complexity, risk of
cost, and inbound threats” (Khan & Keramati, 2023, p. 12). An effective way to map this out is to
use a Failure Mode and Effect Analysis model. In these models, results are found by calculating
the impacts and probabilities for any identified risks. An FMEA table also includes actions to
take to mitigate those risks.
Technology and data sharing is not required to manage a supply chain. Though having
technology enhances the flow of a supply chain, a traditional approach is not unheard of. Going
back to the visibility of the supply chain, going traditional may negatively impact the supply chain
in not having enough of it. There seems be a slowdown in the process, which could lead to a
lack of interest from involved parties, higher cost of goods sold, and a missed opportunity in
accountability. “Even after a problem is identified, predicting its likely effects and finding a fix can
require considerable time and effort” (RiskOptics, 2021, para. 12). With less of a focus on the
customer need and more of an effort to manage the production and provision piece, traditional
supply chains are less successful, but still useful. Digital supply chains are the way to go, but
having the intelligence and capability to operate without technology is strategic.
References
Khan, K., & Keramati, A. (2023). A Framework for Smart Supply Chain Risk
Assessment: An Empirical Study. International Journal of Information Systems and
Supply Chain Management, 16(1). https://doi.org/10.4018/IJISSCM.316167
RiskOptics. 2021. Traditional supply chain vs. digital supply chain.
https://reciprocity.com/blog/traditional-supply-chain-vs-digital-supply-chain/
Talpur, S. R., Abbas, A. F., Khan, N., Irum, S., & Ali, J. (2023). Improving Opportunities
in Supply Chain Processes Using the Internet of Things and Blockchain Technology.
International Journal of Interactive Mobile Technologies, 17(8), 23–38.
https://doi.org/10.3991/ijim.v17i08.39467
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