This document discusses supply chain risk management. It defines supply chain risk management as implementing strategies to manage everyday and exceptional risks along the supply chain through continuous risk assessment to reduce vulnerability and ensure continuity. It notes traditional risk factors included ensuring supply, quality, financial stability of suppliers, innovation, just-in-time processes, and outsourcing. However, it states there are now new variables like reputational damage, corruption, pandemics, intellectual property issues, modern slavery, revenue impacts, geopolitics, and unknown risks. It questions whether organizations are adequately prepared to assess risks among suppliers and monitor recovery strategies.

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

2. Memories
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 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"
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4. What we expect to manage…
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5. Traditional risk factors
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Assurance of supply
Quality
Supplier financial risk
Innovation
JIT
Lean
Extended Logistics
Outsourcing

6. The new variables
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 Brand & Reputational damage
 Anti Bribery & Corruption
 Pandemics
 Intellectual Property
 Modern Slavery
 Revenue Damage
 Geopolitics
 Brexit…………..
 Unknown, unknowns

7. What’s changed ?
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“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 ?
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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 ?
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 Investment
 Training
 Inclusion
Or Alternatively !

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Questions ?
johnxmurphy@btinternet.com
07801 177294
JXM Sourcing Ltd