Softype, We're Oracle NetSuite ERP Experts

Edit Content

9 Ways to Avoid Supply Chain Risk

As a business executive, you understand the importance of supply chain management in ensuring the success of your company. However, the globalized and interconnected nature of supply chains also exposes them to various risks that can disrupt operations and negatively impact your bottom line. In this article, we will explore nine common supply chain risks and provide strategies for avoiding or lessening them. By understanding these risks and taking steps to mitigate them, you can ensure the resilience of your supply chain and the long-term success of your company.

Geopolitical Risk

One of the most difficult risks to predict and control is geopolitical risk. This can include factors such as wars, political instability, and changes in trade policies. These risks can disrupt the flow of goods and services, leading to delays, increased costs, and even complete supply chain failures. 

To reduce geopolitical risk, it is important to diversify your supplier base. This means not relying on a single country or region for your goods and services. By having multiple suppliers in different regions, you can reduce the impact of any disruptions in one area. Additionally, staying informed about political developments in the countries where your suppliers are based and speaking to businesses in the country of your main supplier can help you predict potential disruptions sooner, allowing you to make necessary adjustments to your supply chain.

Natural Disasters


Another risk to your supply chain is natural disasters such as hurricanes, earthquakes, and floods. These events can damage or destroy infrastructure, disrupt transportation, and lead to shortages of goods and services.   

To avoid or ameliorate natural disasters, it is important to have a plan in place for dealing with these events. This includes identifying potential hazards, assessing the risks, and developing strategies for responding to a disaster. Additionally, having a disaster recovery plan in place can help you quickly resume operations after an event.

Quality Risk

Another common supply chain risk is the risk of receiving defective or subpar goods. This can lead to customer dissatisfaction, lost revenue, and damage to your brand.

To mitigate quality risk, it is important to have strict quality control measures in place. This includes inspecting goods upon arrival, performing regular audits of suppliers, and having a process in place for dealing with defective goods. Additionally, it is important to have clear communication with suppliers about your quality expectations and to work with suppliers that have a proven track record of providing high-quality goods.

Operational Risk

Another risk to your supply chain is operational risk. This can include factors such as lack of inventory management, poor logistics, and lack of standardization in process. These risks can disrupt operations, leading to delays and increased costs.

To lessen operational risk, it is important to have a robust inventory management system in place. This includes forecasting demand, implementing a sound inventory system, and having a process in place for dealing with unexpected demand. Additionally, implementing standardization in process and having a good logistics plan will help in managing the operational risk.

Technological Risk

As technology becomes increasingly integrated into supply chain operations, the risk of technological failures or obsolescence becomes more prevalent. These failures can disrupt operations, steal sensitive information, and lead to costly downtime.

To reduce technological risk, it is important to stay informed about the latest technology trends, and to invest in the latest technology. This includes regular updates to software and systems, employee training on technology best practices, and incident response plans for dealing with technological failures.

Inadequate Supply Chain Technology Risk

Without proper technology in place, it can be difficult to accurately track inventory levels, manage suppliers, and coordinate logistics. This can lead to delays, stockouts, and other operational issues that can negatively impact a company’s bottom line.

One way to allay this risk is by implementing an Enterprise Resource Planning (ERP) system. An ERP system is a software solution that integrates all aspects of a business, including supply chain management, into one centralized platform. This allows companies to have real-time visibility into inventory levels, enabling them to make better-informed decisions about when to place orders and how to manage stock.

Another benefit of using an ERP system for supply chain management is the ability to automate many of the manual processes involved in managing suppliers and coordinating logistics. This can help to reduce errors and increase efficiency, ultimately resulting in cost savings for the business. Additionally, an ERP system can provide valuable insights into key performance indicators such as supplier performance, inventory turnover, and logistics costs.

Cyber Risk

Another common supply chain risk is the risk of cyber attacks. These attacks can disrupt operations, steal sensitive information, and lead to costly downtime.

To assuage cyber risk, it is important to have a robust cybersecurity plan in place. This includes regular updates to software and systems, employee training on cybersecurity best practices, and incident response plans for dealing with a cyber-attack. Additionally, working with a managed service provider (MSP) can provide your business with additional security measures such as firewalls, intrusion detection, and regular security assessments.

Excess Demand Risk

Another risk to your supply chain is the risk of excess demand. This can occur when there is a shortage of materials caused by various events such as natural disasters, production delays, or unexpected spikes in demand. In these cases, the result is insufficient inventory for customers, which can lead to lost sales and damage to your reputation.

The risk of offending customers who are unhappy with shortages is a significant one. If customers are unable to purchase the products they want, they may become frustrated and seek out a competitor. This can lead to lost revenue and damage to your brand. Additionally, if customers are not informed about shortages in a timely and transparent manner, they may feel misled and lose trust in your company.

To ease the risk of excess demand, it is important to have a robust inventory management system in place. This includes forecasting demand, implementing an inventory system, and having a process in place for dealing with unexpected demand. Additionally, having clear communication with customers about inventory levels and expected delivery times can help manage their expectations and minimize frustration.

Currency Fluctuation Risk

Currency fluctuations are another risk to the supply chain. These fluctuations can occur due to changes in economic conditions or political developments, and they can have a significant impact on costs. For example, if the currency of a country where your suppliers are based appreciates against your currency, the cost of goods and services from that country will increase.

To allay the risk of currency fluctuations, it is important to have a currency hedging strategy in place. This includes hedging currency exposure through financial instruments such as forwards, futures, and options. Additionally, having a diversified supplier base that includes suppliers from different countries can help mitigate the impact of currency fluctuations.

Conclusion

As a business executive, managing supply chain risks is a critical component of ensuring the success of your company. By understanding the various risks that can arise within a supply chain and taking steps to mitigate them, you can ensure the resilience of your supply chain and the long-term success of your company. Implementing strategies such as diversifying your supplier base, staying informed about political and technological developments, having a robust inventory management system in place, leveraging ERP technology, and having a currency hedging strategy can help you navigate the complex and ever-changing landscape of supply chain management.

Softype is a global provider of cloud business automation solutions and an experienced enterprise consulting provider to medium and large enterprises. With offices in the US, Philippines, India, and Kenya and remote delivery and support capabilities, our friendly experts provide Softype clients with the help they need, no matter their geography.

Softype combines practical solutions with expert service, thus maximizing our clients’ investments in their business automation solutions. We have friendly experts who can help guide your team through its digital transformation. From mutual discovery to understanding your requirements and implementing the solution, we will support you every step of the way.

For further information, please contact us here. You can also reach out to us at [email protected] or call us at +1 650 488 4412 (Global), +63 967 429 9575 (Philippines), +91 22 4616 3839 (India), +254 720 940 174 (Africa), and +61 452 183 613 (Australia).

About the Author
Hugh Klesch-Sawyer
Hugh Klesch-Sawyer

Hugh Klesch-Sawyer, Digital Marketing Specialist

Hugh graduated with a Bachelor of Science degree from Old Dominion University. Discovering through a desire to help his church, that digital marketing skills were in short supply, he began to immerse himself in this knowledge.

In 2021, he completed a 6-month Digital Marketing certification course through the Digital Marketing Institute and was certified in that specialty after 4 months in the program.

In January of 2022, Hugh accepted a position as Digital Marketing Specialist with Softype. Since then, Hugh has completed 2 additional marketing certifications in search engine optimization and content marketing through HubSpot Academy.

About Author

^
close slider

Request A Call Back

Mr. Shreyansh Patil (Shrey)

Group CEO

Shrey holds a Master’s degree in Business Administration from the Australian Graduate School of Management, University of New South Wales, specializing in consulting.

With extensive experience in Enterprise Cloud Solutions (ERP) and Management Consulting spanning four continents, Shrey is equipped with the ability to bridge gaps between technology and business outcomes that will enhance customer experience. Having held leadership roles in consulting, advisory, and technology organizations across various geographies, Shrey brings a wealth of knowledge and a proven track record in general management, leadership, and business development. With excellent people management skills and a strong consulting background, Shrey is extremely passionate about adding value through technology and process re-engineering.

Shrey’s unwavering dedication to cultivate a high-performing, customer-centric culture at Softype will empower our team to reach new heights and become the best version of ourselves.

Ms. Juliana Luz

Co-Chairman and Co-Founder

Juliana (Nana) holds a Bachelor’s degree in International Relations from Stanford University.

The first development of cloud computing found Nana working in this area with her own start-up. Understanding the benefit of consolidating data and systems into a single version of the truth, she then partnered with NetLedger (now Oracle NetSuite) to offer a fully functional Enterprise Resource Planning (ERP) system built exclusively on the cloud.

Nana’s expertise includes envisioning change and delivering value to growth-oriented businesses. Utilizing ERP technology and her advanced skills in process optimization, she streamlines processes, eliminates redundancies and manual processes, and facilitates digital transformations for Softype clients.

A ‘hands-on expert, Nana has, since founding Softype, participated in dozens of projects across 26 countries in the Americas, Europe, Africa, and all over Asia. Nana serves on the board of La Proteccion de la Infancia (Gota de Leche) and United Success Global.

Mr. Hugh Klesch-Sawyer

Digital Marketing Specialist

Hugh holds a Bachelor of Science degree in Marketing Management from Old Dominion University.

As the son of a grocery store owner’s parents, Hugh started his marketing education early, beginning at around 10 years old. After beginning his Softype career in Sales, he discovered that additional marketing knowledge would be beneficial. He began to immerse himself in marketing education and in 2021, Hugh started a 6-month Digital Marketing certification course through the Digital Marketing Institute and American Marketing Association. After 4 months in the program, Hugh earned his Digital Marketing Specialist and Professional Certified Marketer certifications. In January 2022, he accepted a position  change from Sales/Business Development to Digital Marketing Specialist.

Hugh’s mantra is: “If you think you can or you think you can’t, either way, you’re right.”

Mr. Terence Michael C. Rena

Customer Success Officer

Terence holds a Bachelor of Science degree from the Polytechnic University of the Philippines with a major in Tourism Management.

Terence’s experience includes sales and marketing roles, particularly creating marketing strategies, promotions, and retention programs in the travel and tourism industry. Since joining Softype in 2021, Terence has been a prime driver of marketing insights and a facilitator of key marketing initiatives in the Asia Pacific region. Event management is his specialty, including both online and in-person events that attract potential Softype clients to engage with the brand. Additionally, Terence is the face of Softype to our clients in Asia and Africa, ensuring they receive optimal service.

Personally, Terence enjoys basketball, cycling, guitar playing, mecha (robot) modeling, and video games. His daily mantra is as follows: “I can do all things through Christ who strengthens me.”

Mr. Ebenezer (Ebe) Mutungwa

African Sales

Ebe holds a Bachelor of Science degree in Information Technology from Jomo Kenyatta University of Agriculture and Technology (JKUAT) in Nairobi, Kenya.

Ebenezer (Ebe) Mutungwa earned his Bachelor’s Degree in Information Technology from Jomo Kenyatta University of Agriculture and Technology (JKUAT). Ebe combines outstanding communication skills with expert knowledge of NetSuite ERP (5 years in pre-sales for NetSuite Africa). Although, as Softype’s Sales officer for the African continent, Ebe works with organizations in various industries, he has a soft spot for nonprofit organizations. A previous
NGO manager, Ebe understands their challenges and demonstrates how they can leverage the Oracle NetSuite ERP and NetSuite’s Social Impact program to support their mission.

When not working, Ebe enjoys traveling, jogging, playing the guitar, and spending time with family and friends. His words to live by are “Through it all; all is well.”

Mr. Jack V. Lazo

North American Sales

Jack attended the University of the Philippines, majoring in Hospitality Management.

Jack’s experience includes 4 years in the broadcasting industry and more than 33 years in enterprise information technology solutions sales. In the broadcast industry, Jack learned to match his style to anyone’s; he uses this skill today to communicate in a manner his clients appreciate. Jack combines empathetic listening skills with IT solutions knowledge to understand the finer points of what his customers require, need, and want.

Jack prizes spending time with his family. When he has time, he enjoys listening to music and watching soccer and mixed martial arts.

Mr. Chris Beecroft CPA

Vice President of Sales

Chris holds a Bachelor’s Degree in Accounting from Florida Atlantic University, an MBA from Florida State University, and is pursuing a DBA degree from AMA University.

Chris has more than 16 years of software sales experience, including 13 years in ERP sales with Oracle and SAP. Combining his ERP and accounting knowledge (CPA), Chris finds the right solution for our clients. He dives headfirst into the details of his team’s engagements, ensuring that Softype’s solutions are always the best fit. Others describe Chris as action-oriented, hands-on, and accountable.

Personally, Chris enjoys tennis, squash, badminton, biking, and reading. He also enjoys leading others to change their lives by providing personal guidance. His words to live by are “Who Dares Wins.”

Mr. Upendra Rabde

Business Architect

Upendra holds a Master of Business Administration degree from Indus Business Academy in Bengaluru, India. His credentials include the academic specialties of Information Technology and Marketing.

Upendra’s experience includes business consulting and business process re-engineering. He brings more than 17 years of technical solution development experience to Softype. He counts experience in Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Supply Chain Management (SCM) integration projects in the manufacturing, telecom, healthcare, retail, banking, and insurance industries. He is proficient in procurement solutions and complex regulatory and compliance areas. Upendra also counts additional product management experience in the health care industry.

Joining Softype in 2021, Upendra brings a capability for hyper learning and an outstanding attitude, two traits in the Softype DNA, and is always a pleasure to work with.

On a personal note, he enjoys HAM radio operations and watching cricket matches. Upendra’s philosophy of life is summarized in his daily mantra: Past is history, future is mystery but today is a gift; that’s why it’s called present.

Ms. Pooja Manudhane

Product Manager

Pooja holds a degree in Engineering from the University of Mumbai. She has also completed an MBA focusing on accounting and business processes.

Pooja’s association with Softype began in 2012. She joined Softype as a Junior Functional Consultant. From the beginning, she was engaged in working with clients, specializing in training clients to undergo digital transformations successfully. Pooja developed a knack for visualizing ERP solutions to inefficient processes and communicating her vision to clients.

Pooja automated manual processes using the NetSuite ERP solution, thereby improving worker productivity. As her experience grew, Pooja received promotions to Senior Functional Consultant and Product Manager. She mentors junior colleagues in technical and business processes and, in so doing, helps evolve and propagate the Softype company culture.

Pooja understands that NetSuite ERP is the cloud ERP provider of choice because of the ease with which it can be adapted to different industries, its intuitive User Interface (UI), and the speed with which Softype can successfully implement it (a few months).

Pooja delights in working with customers in different countries. Her patient approach to managing change and guiding subordinates has won her praise from clients and co-workers
alike.

Ms. Prachi Shende

Program Lead, Education Vertical

Prachi has a Bachelor’s degree in Electronics from the University of Mumbai and a Master’s degree in Computer Science from the University of Texas.

Prachi began her working career in the US (California). Over the years, she has moved from a purely technical role to a techno-functional role. As a techno-functional consultant, she can work with business, functional, and technical teams. Her specialty is implementing and customizing systems aligned with industry best practices. During her tenure of service, Softype promoted her five times in five years, culminating with her current position. Versatile and dynamic, Prachi cherishes a fast-paced work environment that allows her professional skills to grow. Her work is in the K-12 and tertiary education domains. She oversees the Softype education ERP (edERP) product development and management. The edERP product continues to evolve and expand due to new requirements in an ever-changing education sector. This gives her a chance to grow by constantly reinventing herself.

Prachi’s passion is to help educational institutions grow by migrating their enterprise-wide resources to cloud based systems. She believes that “Given new situations, the market for edERP, i.e., education on the cloud service, is here to grow. It’s about how we best serve it.”

Ms. Manisha Hule

Chief Operating Officer

Manisha holds a Bachelor’s degree in Physics from the University of Mumbai.

Manisha is the delivery manager for Softype’s ERP services. Experienced in project planning and execution, she provides leadership for all Softype’s solution consulting and implementation activities. Manisha began her career at Softype, working in all of its various departments, culminating in her selection as a member of the Executive team. Manisha has experience in all aspects of project organization and delivery. An excellent team manager, Manisha ensures that customer projects get the optimum resources required, facilitating minimal risk implementations that meet delivery schedules. Manisha’s expertise and guidance are significant factors in ensuring, that, unlike many ERP vendors, Softype implementations are delivered successfully and on time.

Mr. Moses Rajan

Global Finance Officer

Moses holds a Bachelor’s Degree in Commerce from the University of Mumbai, specializing in Accounting and Economics.

Moses has more than 15 years of experience in ERP implementations and rollouts in a wide variety of industries across multiple geographies. He has engaged with clients across the Americas, Europe, the Middle East, and Asia. Building on this experience, Moses helps Softype’s customers manage the financial complexities of multi-books, multi-currencies, multi-exchange rates, landed costs, and the myriads of tax regimes such as sales tax, VAT, GST, and others that impact businesses. Working with Softype’s customers, Moses brings his experience to bear on their challenges of dealing with budgets, cash flows, currency revaluations, and financial controls.

Shreyansh Patil (Shrey)

Group – CEO

Shrey holds a Master’s degree in Business Administration from the Australian Graduate School of Management, University of New South Wales, specializing in consulting.

With extensive experience in Enterprise Cloud Solutions (ERP) and Management Consulting spanning four continents, Shrey is equipped with the ability to bridge gaps between technology and business outcomes that will enhance customer experience.

Having held leadership roles in consulting, advisory, and technology organizations across various geographies, Shrey brings a wealth of knowledge and a proven track record in general management, leadership, and business development.

With excellent people management skills and a strong consulting background, Shrey is extremely passionate about adding value through technology and process re-engineering.

Shrey’s unwavering dedication to cultivate a high-performing, customer-centric culture at Softype will empower our team to reach new heights and become the best version of ourselves.

Dr. Arvind Khilnani

Chairman and Co-Founder

Dr. Arvind holds a Bachelor’s degree in Electrical Engineering (MIT, Cambridge, Massachusetts), a Master’s degree in Management (MIT Sloan School) and a Ph.D. in Engineering Economic Systems (Stanford University).

A dedicated teacher and mentor, Arvind believes in Leadership through inspiration. Trained as a mathematical modeling and optimization analyst, Arvind focused his early career on developing tools to enable company growth. He worked with Fortune 500 companies to adapt their use of technology for growing new, evolving markets. Presently his efforts seek to expand these tools to small and medium enterprises.

Since co-founding Softype, he has channeled his energies to help international organizations grow by leveraging the benefits of technology, including process optimization and automation.