1. ©Zurich
Supply Chain Risk never
sleeps, do you?
Nick Wildgoose
Global Supply Chain Product Leader
Tim Astley,
Regional Practice Leader, Strategic Risk & Business Resilience
Zurich Insurance

2. ©Zurich
Still a Major Opportunity!
 Results summary – not getting better quickly enough
 Executive Support and its importance
 Need for comprehensive risk assessment
 How technology and big data can help

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• One in three organizations (34%) have
experienced cumulative losses of over €1 million
due to supply chain disruption.
Loss Picture 70%

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• Organizations reporting 11 or more supply chain
disruptions have increased from 7% to 22%.
Frequency

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• The increased cost in disruption may be attributed to rising
figures reporting loss of productivity (68% from 58%), cost
of working (53% from 39%) and damage to brand or
reputation (38% from 27%).
Impacts

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• Organizations reporting high top management
commitment to supply chain resilience have
decreased from 33% to 27%.
Top Management Commitment

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 Benefits
- Understand value at risk from supplier failure
- Increased cost of working to overcome disruptions
- Management time
- Near miss costs
- Linking to other initiatives for cost synergies e.g. CSR
– Reputational damage
 Costs
– Staff investment
– Potential technology/software investment
Business Case
Executive Support

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 Aligning your reward structures
 Communication between your functions
 Information flows with common understanding
 Is your organizational structure correct and is it clear who owns
supply chain risk
 Alignment with your critical suppliers
Overcoming the Silos
Executive Support

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Supply Chain Risk Assessment
 Consider ‘value’ not ’supply’ (work backwards!)
 What are the KPIs?
 Where is greatest value created?
 How do supplies flow to these key value points?
 Where are the potential bottlenecks?
 What could go wrong?
 How robust is the supply chain?

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10
External environment
Economic Geographic Political Structural

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11
Process
Product
management /
new product
development
Supplier selection
management
Supplier
management
(financial
strength)
Supply chain
performance

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12
People and Process
Internal risk
management
Business continuity
management
Vulnerability to
accidents / errors
Vulnerability to
malicious
intervention
Regulatory issues
Skills and IP
management
Commercial
contract
management

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13
Organisation networks (suppliers)
Suppliers risk
management
Suppliers
relationships
Suppliers skills and
experience
Skills and IP
management

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14
Supply chain risk factors
Suppliers risk
management
Suppliers
relationships
Suppliers skills and
experience
Skills and IP
management
Internal risk
management
Business continuity
management
Vulnerability to
accidents / errors
Vulnerability to
malicious
intervention
Regulatory issues
Skills and IP
management
Commercial
contract
management
Product
management /
new product
development
Supplier selection
management
Supplier
management
(financial
strength)
Supply chain
performance
Economic Geographic Political Structural

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15
Risk scenario development
Vulnerability Trigger Consequence Mitigation

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Technology and Big Data

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Key Logistics Hub

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Supplier Dependence

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Conclusions
 Executive Support need to develop the business case
 Silo alignment
 Supply Chain Risk assessment based on a segmented approach
 Technology and Big Data
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THANK YOU
Contact
Nick Wildgoose, Global Supply Chain Product Leader
Email: Nick.Wildgoose@uk.zurich.com
Mobile +447875886068