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Global Supply Chain Management In a Changing World Economic Environment Vinod R. Singhal College of Management Georgia Institute of Technology Atlanta, GA, 30332 E-mail:  [email_address] Instituto de Empresa - IE Business School Madrid, Spain
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Trends in supply chain management
[object Object],[object Object],Examples of effective risk management
[object Object],[object Object],[object Object],[object Object],What managers are saying about disruptions
Obstacles to addressing risks Survey done by Harris Interactive in 2005 .
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Agenda
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Consequences of disruptions
[object Object],[object Object],[object Object],[object Object],[object Object],Sample
Responsibility for disruptions
Reasons for disruptions
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Performance implications
Stock market reaction to disruption announcements
Comparison with stock market reaction to other corporate events Financial events Stock splits  3.3% Open market share repurchase  3.5% Proxy contest  4.2% Increasing financial leverage   7.6% Decreasing financial leverage   -5.4% Seasoned equity offerings   -3.0% Marketing events Change in firm name 0.7% Brand leveraging     0.3% Celebrity endorsement 0.2% New product introduction 0.7% Affirmative action awards   1.6% Information technology events IT Investments 1.0% IT problems  -1.7% Operational events Increase in capital expenditure  1.0% Increase in R&D expenditure   1.4% Effective TQM implementation   0.7% Internal corporate restructuring   1.0% Decrease in capital expenditure  -1.8% Plant closing   -0.7% Automotive recalls   -0.5%
Average stock returns over different intervals
Average stock returns over three years
Volatility changes On average 21% increase in volatility
[object Object],[object Object],[object Object],Broader perspectives
Profitability impacts of disruptions
Profitability impacts of disruptions
[object Object],[object Object],[object Object],[object Object],Summary
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Are supply chains more prone to disruptions today
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Why enough attention is not paid to the  possibility of disruptions?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A framework for managing supply chain risks
Debra Elkins:  A framework for Business Interruption Risk Analysis:  GM Research Lab Paper
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Likelihood/consequences of supply chain risks
Prioritizing risks Effort and resources not committed Financial Impact Certain Likely Possible Remote Little Moderate Significant Catastrophic Active Management of Risk Highest Priority for Risk Mitigation Monitor and address risk mitigation strategies Effort and resources not committed Likelihood/frequency ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Proactively managing disruptions
Building capabilities to manage risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Implications for managing supply chains
[object Object],[object Object],[object Object],Final Thoughts
[object Object],[object Object],Final Thoughts
Back up Slides
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A process for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Categories of supply chain risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Categories of supply chain risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Debra Elkins:  A framework for Business Interruption Risk Analysis:  GM Research Lab Paper
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Likelihood/consequences of supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Getting information about supply chain risks
Prioritizing risks Effort and resources not committed Financial Impact Certain Likely Possible Remote Little Moderate Significant Catastrophic Active Management of Risk Highest Priority for Risk Mitigation Monitor and address risk mitigation strategies Effort and resources not committed Likelihood/frequency ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategies for managing supply chain risks
[object Object],[object Object],[object Object],[object Object],[object Object],Improving the supply chain risk management process
[object Object],[object Object],[object Object],[object Object],Final Thoughts
[object Object],[object Object],Other findings
Profitability impacts in the year after the disruption
Profitability impacts in the 2 nd  year after the disruption
[object Object],[object Object],[object Object],A thought

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La gestión de la cadena de suministro en un entorno económico cambiante

  • 1. Global Supply Chain Management In a Changing World Economic Environment Vinod R. Singhal College of Management Georgia Institute of Technology Atlanta, GA, 30332 E-mail: [email_address] Instituto de Empresa - IE Business School Madrid, Spain
  • 2.
  • 3.
  • 4.
  • 5. Obstacles to addressing risks Survey done by Harris Interactive in 2005 .
  • 6.
  • 7.
  • 8.
  • 11.
  • 12. Stock market reaction to disruption announcements
  • 13. Comparison with stock market reaction to other corporate events Financial events Stock splits 3.3% Open market share repurchase 3.5% Proxy contest 4.2% Increasing financial leverage 7.6% Decreasing financial leverage -5.4% Seasoned equity offerings -3.0% Marketing events Change in firm name 0.7% Brand leveraging 0.3% Celebrity endorsement 0.2% New product introduction 0.7% Affirmative action awards 1.6% Information technology events IT Investments 1.0% IT problems -1.7% Operational events Increase in capital expenditure 1.0% Increase in R&D expenditure 1.4% Effective TQM implementation 0.7% Internal corporate restructuring 1.0% Decrease in capital expenditure -1.8% Plant closing -0.7% Automotive recalls -0.5%
  • 14. Average stock returns over different intervals
  • 15. Average stock returns over three years
  • 16. Volatility changes On average 21% increase in volatility
  • 17.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Debra Elkins: A framework for Business Interruption Risk Analysis: GM Research Lab Paper
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 35.
  • 36.
  • 37.
  • 38. Debra Elkins: A framework for Business Interruption Risk Analysis: GM Research Lab Paper
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54. Profitability impacts in the year after the disruption
  • 55. Profitability impacts in the 2 nd year after the disruption
  • 56.