Resilience hubs for centralized risk management Hub-and-spoke models centralize core functions and expertise in a “hub” while distributing specific tasks and operations across decentralized units or “spokes.” Lighthouses are increasingly employing these models to streamline risk management and improve responsiveness across their end-to-end value chains. Each of the core function spokes – customers, manufacturing, supply management, logistics, finance etc. – play varying roles within the resilience hub. When spokes lack core response capabilities (such as suppliers and customers who may not be monitoring risk themselves), hub-led models make sense. Alternately, spoke-led approaches enable integration of risk management with other processes and tailored monitoring of specialized risks – most common in logistics, manufacturing, quality and facilities management functions. Spoke by spoke: Lighthouse strategies for centralization Depending on the unique characteristics of their value chains, Lighthouses are deploying digital technologies to build resilience and transparency across each node. They are using big data and advanced algorithms to improve prediction accuracy in demand and price forecasting and advanced integrations to manage entire risk ecosystems. –Supplier management: Upstream transparency is often enabled by hub-led supplier platforms for improving inbound quality and operational stability. –Quality: Lighthouses utilize a spoke-led approach with suppliers when a decentralized model is needed to leverage localized expertise, allowing suppliers to take ownership of quality while still adhering to standards. –Logistics and delivery: Especially across great distances, Lighthouses tend to take a hub-led approach that assigns single accountability for regional risk response. –Inventory and planning: Lighthouses are leveraging the same integrated data platforms that power product development to power increasingly advanced planning algorithm(s) – plural – to mitigate the impact of disruption. –Purchasing and negotiations: Similar models are being used to predict the future in commodity purchasing. Spoke-led Best for: Spokes with strong risk management capabilities locally are spoke-led; centralized support and standards by HubHub-led Best for: Spokes with nascent risk management capabilities but potential for cross-site data integration with Hub Global Lighthouse Network: The Mindset Shifts Driving Impact and Scale in Digital Transformation 28

Global Lighthouse Network 2025