The supply chain disappointment – Insurance Insight

As supply chain risks rise up the agenda for businesses, there is clearly an opportunity for insurers to step in with up-to-the-minute solutions that respond to new challenges. Dequae believes while the risks have changed, “the insurance solutions have not really adapted to the changes in the supply chains”. She points, in particular, to the need for innovation when it comes to “more coverage and capacity”, as well as broader conditions and “coverage at acceptable prices”.

via The supply chain disappointment – Insurance Insight.

I have become used to some of my more “critical” comments not making it past moderators who are overly-sensitive to the potential for political repercussions.  So here it is:

supply_chain_diagramAnyone who has given the subject matter some thought knows, broadly, what the problems are. Some even know of available solutions. But NONE have acted to seize the competitive advantage that “embedding” solutions as part of their proposition!

“…systems and structures are required that are attuned to sensing and reporting in near-real-time throughout the supply chain, including at least the top two levels of suppliers. Metrics about manufacturing capacity, inventory holdings and transport availability on a global basis are prerequisites. Success will be defined by a company’s ability to process such information fast, which will in turn be highly dependent upon the information systems deployed to the task. The problem for many companies is that their existing IT infrastructure is more aligned to old linear, deterministic and rigid processes rather than the requirements of a complex and fast changing world” Supply Chain Complexity

The insurance industry needs to embrace the technology that gives it the means to exchange/assess/rate current risk data. To provide flexible risk solutions with timescales that reflect the capabilities and needs of their customers rather than highlighting the shortcomings of its own model!

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