Sean Murphy, CEO of Lootok, co-presented with Chris de Wolfe, the Director of Risk Management at Mars, Inc., at the RIMS 2016 Conference on how to roll out and maintain a global supply chain risk and resiliency program. Supply chain leaders manage risk as part of their daily routines. This can make it difficult to get their buy-in for your programs, especially since supply chain dynamics make many traditional operational risk and business continuity techniques ineffective. Still, supply chain leaders need your risk management techniques and tools to make decisions, solve problems and communicate in complex environments. See how one organization inspires resilient supply chain efforts and builds a community of supporters. Gather methodologies, tools and roadmaps to find your program success.

1. Rollout & maintain a global supply
chain risk and resiliency program
RIC012
Sean Murphy
CEO & President, Lootok
Sean is CEO & President of Lootok, an operational risk management consulting firm based in New
York. Founded in 2006, Lootok brings a fresh perspective to managing organizational resiliency
initiatives including business continuity and crisis management.
Chris de Wolfe
Director of Corporate Risk, Mars Incorporated
Chris is Director of Risk Management at Mars Incorporated. In providing operational risk management direction
and leadership to all Mars units worldwide, Chris oversees property loss control, safety audits and liability
exposure analyses, international insurance, and business continuity planning activities worldwide.

2. How do we penetrate
the global supply world?

3. Being shown the door

4. Centralized function in a
decentralized organization

5. Goal
• Supply heads with RM’s support expertise
• Show immediate benefits
• Not consume too much of their time

6. What challenges do I face?
• Failed first attempt
• No one from supply asks for help
• Tried to move too fast
• We came out of nowhere

7. Where did I want to be?
• Better management of Mars Risk
environment
• Infuse Risk Management into
Mars’ Global Supply network

8. How did I get from A to B?
• Redrafted on vision
• Started simple
• Established relationships
and a simple process
• Planted seeds for growth

9. Advice
• Demand
• Success
• Top of mind

10. Build based on demand
• Push vs. Pull
• Success: Under-the-roof
• Concern: Business Partner Risk

11. Onsite Business partner
• List
• Screen
• Plan

12. Offsite Business Partner
• Score card
• Toolkit
• Audit

13. Road map
• Transparency and Management
• Commercial
• Capital Expenditure and Design

14. Road map
• Transparency and Management
• Watch list
• Concept plans
• Continuous improvement
• Commercial
• Capital Expenditure and Design

15. Road map
• Transparency and Management
• Commercial
• Contacts
• Proof of concepts
• Capital Expenditure and Design

16. Road map
• Transparency and Management
• Commercial
• Capital Expenditure and Design

17. Let’s look at an example

18. Step 1: List
Product selection Partner selection
• Flexi-pac
• Cargill

19. Step 2: Screen
Crisis Cards
• Choose a card at random from the deck and reads
the scenario to the group.
• Based on the scenario, would you declare this a
crisis? Explain your answer.
A fire erupts in the
factory. Two associates
are injured, several
tons of product is
burned, and some
criCcal equipment is
damaged.

20. Step 2: Screen
Risk Matrix
Enhance capabilities over time
Invest and maintain capabilities
Develop workarounds and monitor
Monitor
How do you measure probability?
Low: Once in a lifetime
Medium: Once every few years
High: Once a year

21. Step 3: Plan
Attackers & Defenders
Identify your most vulnerable high impact
equipment items using competitive strategies.

22. Step 3: Plan
Attackers & Defenders
Instruc(ons
• Try to cause maximum damage to
the business by aEacking three
equipment items.
• Write your selecCons, why you
chose these items and how you
would aEack them.
• When done, fold your card in half.

23. Step 3: Plan
Attackers & Defenders
Instruc(ons
• Try to keep the business afloat by
choosing three equipment items to
protect from the aEackers.
• Write your selecCons, the strategies
you would use, and your reasoning
for doing so on the back of your
defender cards.
• When done, fold your card in half.

24. Step 3: Plan
Strategies
Other
Develop any other
strategy as required
Re-engineer
Re-engineer recipes or
processes to remove,
reduce, or replace the
materials or service
Replace
Find alternate
suppliers
Reassign
Reassign producCon
to another site
Replace
Find alternate
suppliers
Other
Develop any other
strategy as required
Redundancy
Ensure redundant
suppliers, materials,
or services

25. Step 3: Plan
Task Master
Assess situation
Activate communication plan
Meet to discuss the plan and define
roles & responsibilities
Perform risk analysis on food
safety issues. Define list of
alternate vendors
Call alternate vendors and
arrange for new supply
Work with commercial and supply
to determine how much produce
is in marketplace and lead times
Select and draft contract with new
vendors
• Identify resiliency strategies and recovery tasks for your key failure
scenarios.
Contact XYZ site and determine
capacity to produce additional
Product A and B
Coordinate distribution of product
from XYZ site

26. Step 3: Plan
Task Master
• Write down key tasks that will lead you toward successful recovery on pieces of paper.
• Place the tasks under the appropriate Cmeframes.
• ANer you have finished wriCng , review the tasks to ensure they have been placed in the correct Cmeframe
and that nothing has been forgoEen.

27. Questions
Chris de Wolfe
Director of Risk Management
Christopher.de.wolfe@effem.com
www.linkedin.com/pub/chris-wolfe/13/ab9/70
Sean Murphy
CEO & President, Lootok
Sean@lootok.com
www.linkedin.com/in/seanmurphy