Supply Chain Risk Management

1. SUPPLY CHAIN RISK
MANAGEMENT
John Murphy
And Procurement’s role in it…….

2. Memories
22/11/16SAID Business School
2
 NBSK $380 - $940
 Fuel Crisis 00’ 05’ 07’
 Y2K $412bn
 Financial Crisis 07’ – 08’

3. Definition
“Supply chain risk management (SCRM) is "the
implementation of strategies to manage both
everyday and exceptional risks along the supply
chain based on continuous risk assessment with the
objective of reducing vulnerability and ensuring
continuity"
22/11/16SAID Business School
3

4. What we expect to manage…
22/11/16SAID Business School
4

5. Traditional risk factors
22/11/16SAID Business School
5
Assurance of supply
Quality
Supplier financial risk
Innovation
JIT
Lean
Extended Logistics
Outsourcing

6. The new variables
22/11/16SAID Business School
6
 Brand & Reputational damage
 Anti Bribery & Corruption
 Pandemics
 Intellectual Property
 Modern Slavery
 Revenue Damage
 Geopolitics
 Brexit…………..
 Unknown, unknowns

7. What’s changed ?
22/11/16SAID Business School
7
“Yeah I get it, but its all about the cost, right ?”
Lack of agility through supplier consolidation
“Lets focus on our core”
“How can we drive scale”

8. And yet ?
22/11/16SAID Business School
8
56% - felt unable to conduct a cost benefit analysis of
risk of incident amongst suppliers
70% - ask suppliers for business continuity plans
( 30% don’t )
41% - Do not monitor, don’t know or have not
considered recovery strategies after contract award
Source – Supply Management

9. Are you serious ?
22/11/16SAID Business School
9
 Investment
 Training
 Inclusion
Or Alternatively !

10. 22/11/16SAID Business School
10
Questions ?
johnxmurphy@btinternet.com
07801 177294
JXM Sourcing Ltd