Single Point of Failure

The Ten Essential Laws of Supply Chain Risk Management

by Gary S. Lynch

Number of pages: 320

Publisher: John Wiley & Sons, INC.

BBB Library: Operations Management

ISBN: 9780470424964

About the Author

Gary is an author, Managing Director and Global Leader of Marsh’s Supply Chain Risk Management Practice. He has contributed to the WEF global risks report, and been a speaker on global business risk issues.


Editorial Review

Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management uses analogies and dozens of case histories to describe the risk parasite that infects all supply chains while revealing methods to neutralize that parasite. 

Book Reviews

"The book’s tagline reads The 10 Essential Laws of Supply Chain Risk Management and what Gary Lynch is trying to convey is that there are certain basics every manager should know, understand, and act upon. Lynch breaks down Supply Chain Management into ten basic laws, neither founded in academic theories or mathematical formulas, but simple basic principles that anyone can appreciate." Husdal

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Wisdom to Share

If you apply the rules of organizational supply chains to your own behavior, you reduce your own and your organization’s risks.

Risk is manifested in a unique way for every industry, geography, organization, and individual.

Remember the quote “If you have seen one supply chain, you have seen one supply chain.”

Risk does not exist at a distant port or in a warehouse in another country; it is everywhere.

Look for ways to effectively partner with suppliers to focus better on the demand end of the chain.

A ripple effect of missing a logistics target never diminishes in severity; it always increases as it spreads throughout your supply chain.

Logistics management is about moving information, people, and goods in the most effective and efficient means possible.

Invisible problems are easily ignored, but they are all too real in many cases, & manufacturing-level supply chain risks are a good example.

The recession of 2008-2009 highlighted the especially severe problem of supplier risk.

The entire business model that is supported by the extended supply chain must be included in the scope of the analysis.

A supplier’s failure is not a simple problem to evaluate or understand.

A supplier’s failure is not a simple problem to evaluate or understand.

Supply chains are a slave to demand.

Supply chains are extremely vulnerable and volatile, because demand is ultra-sensitive to both perceived and real threats.

While the supply chain is everything, it can also be nothing without a dynamic, effective, and insightful series of initiatives.

The three-pronged attack—Define, Narrow, Act—has to be applied systematically on multiple tiers of your and your supplier’s organization.

It is important to say: the internal priorities are established once the external stakeholders set their risk expectations.

When managing supply chain risk, the organization has little say in setting risk thresholds and priorities.

A risk paradigm set by stakeholders rather than the organization yields more aligned, efficient & resilient supply chain risk management.

The external stakeholders define the risk expectations that the organization must execute.

The Market, clients, regulators, or natural hazards, to name just a few, can initiate change.

Managing supply chain risk would be an easy task if we could control what, when, and how change takes place.

Survivors do not learn to escape change but to manage it more effectively.

Ironically, if competitive demand does change, it usually means your organization is dying.

Rapid change, accompanied by competitive demand and supply market, is constant, persistent, relevant, and dramatic.

Broad generalization can be costly by over-allocating resources to the wrong priorities.

Details are needed to understand and manage risk in the flow of products, services, information, and cash.

Understanding how big an impact the issue might present and gauging an appropriate response can help you navigate around most losses.

Bad decisions are made without accurate or relevant information, significantly influenced by emotion and not made fast enough.

The concept of allowing individual assembly line workers to bring the whole line to a grinding halt because they see a flaw is culturally revolutionary.

Supply chain risk management begins with awareness, a consciousness that everyone is part of an endless stream of supply chains.

A good starting point for any challenge is to understand the context in which the solutions must be implemented.