Supply Chain Risk Management

Learning from Risk Management Leaders • 277

Over the years this company has developed various approaches, some

of which are quite sophisticated, to analyze its products. While provid-

ing a solid foundation upon which to carry out detailed analyses, these

approaches did not necessarily provide the insight required for altering

product cost structures and winning new orders. is case describes

the development of a collaborative cost management approach that was

applied to a complex product that is no longer needed by the U.S. military,

the company’s primary customer. is pending loss of sales clearly repre-

sented a strategic risk to the company. A new, more competitive approach

was needed to compete for sales from international customers.

i