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Carlos Escario from UTi Worldwide; ‘Attain Supply Chain Resilience’
 

Carlos Escario from UTi Worldwide; ‘Attain Supply Chain Resilience’

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    Carlos Escario from UTi Worldwide; ‘Attain Supply Chain Resilience’ Carlos Escario from UTi Worldwide; ‘Attain Supply Chain Resilience’ Presentation Transcript

    • Achieving Supply Chain Resilience Managing the Known Unknowns 24 November 2010
    • Donald Rumsfeld, US Secretary of Defense US Department of Defense news briefing, February 12th, 2002."Reports that say that something hasnt happened are alwaysinteresting to me, because as we know, there are known knowns; thereare things we know we know. We also know there are knownunknowns; that is to say we know there are some things we do notknow. But there are also unknown unknowns – the ones we dont knowwe dont know." Unknown IV III Known I I II Knowns UnknownsNovember 2010 3PL summit: Supply Chain Resilience 2
    • Is your supply chain suffering from disruptions? 9/11November 2010 3PL summit: Supply Chain Resilience 3
    • Not all supply chain disruptions are the same Supply chain disruptions are different in impact and predictability High Financial 9/11 crisis SARS Government Impact Volcano regulations Eruptions Piracy attacks Port Strike Accidents Low Low High PredictabilityNovember 2010 3PL summit: Supply Chain Resilience 4
    • Supply chain disruptions have a direct impact on your company’s financial performance Impact Drivers Company value:  Free Cash Flow  Economic Profit  Return on Capital The trends to extend supply chains and make them leaner have increased the vulnerability of these supply chains to volatility in transportationNovember 2010 3PL summit: Supply Chain Resilience 5
    • How can you make your supply chain more resilient to the challenges in the transportation market? Drivers Predictability Network Carrier Management Redesign Selection Transport Location Management Strategy Mode Disruption Optimization Management Inventory strategy Collaborative Carrier Risk Route Solutions Management Sourcing Optimization Strategy “It is not the strongest of the species that survives, not the most intelligent, but the one most responsive to change” (Charles Darwin).November 2010 3PL summit: Supply Chain Resilience 6
    • Something to think about … Peak oil: what are the consequences for your (extended) supply chains? Global Oil Consumption versus discoveries Global Oil Production and Consumption 1960-2050 (projected) Sources: Futurist.com ASPO-Ireland, Newsletter, August 2007; U.S. Energy Information Administration, World Petroleum Consumption, 2008; and Management Information Services, Inc., 2008 $50 or $180 Per Barrel Of Oil ?!?! Unknown IV III Known I I II Knowns UnknownsNovember 2010 3PL summit: Supply Chain Resilience 7
    • Thank You!November 2010 3PL summit: Supply Chain Resilience 8