Defense Counsel Journal - International Association of Defense ...

The Global Supply Chain Page 415Alternatively, companies mayconsolidate supply chain management,wrapping various other departmentsunder this umbrella. In a sense, links in asupply chain could be viewed as“departments” and individuals that areresponsible for executing eachdepartment core process. 9 Again, such ahierarchy may look like:10With the resulting complexity of theglobal economy, companies will shift tothe more unified approach with onesupply chain manager overseeing thesupply chain, incorporating departmentssuch as purchasing, order fulfillment andmanufacturing. Such an arrangementwould increase a company’s flexibilityand responsiveness in managing itssupply chain.B. Only as Strong as the WeakestLinkThere is no shortage of threats to acompany’s supply chain, and these threats9 Id.10 Id.will be compounded by the increasedscope of the chain. As the concept andreal-world application of the globalsupply chain remains fluid, so does theconcept and real-world effects of variousthreats. To mitigate potential threats to itssupply chain, companies should develop aframework defining and characterizingthe different perils that may exist tointerrupt or break the supply chain.To better define potential threats thatexist, commentators have created anarchetype to categorize threats that mayarise as either “internal” or “external”pressures. The common link among theperils is that each has the potential todisrupt the supply chain. 11 “Internal”pressures include:Processes: Proper execution ofadministrative and/or managerialprocesses undertaken by thecompany. These processesinclude internal assets andinfrastructure, such ascommunication systems,responsiveness of departmentsand leadership structure. If theinternal infrastructure of thecompany fails to operateefficiently, supply chaindisruptions may occur. 12 Controls: The assumptions,rules, systems, and proceduresthat dictate how a company11 Alan Braithwaite, The Supply Chain Risksof Global Sourcing (LPC Consulting, July2009), available at http://www.lcpconsulting.com/files/Supplychain_risks_of_global%20Sourcing%20_v26%20May2010.pdf.12 Id.