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instituteforsupplymanagement.org
CAN YOU AFFORD
THE RISK?
May 16, 2016
instituteforsupplymanagement.org
Disclaimer: I am a Skeptic
instituteforsupplymanagement.org
A Social Scientist
instituteforsupplymanagement.org
A Fortune-teller of Sorts….
instituteforsupplymanagement.org
I Write for the Supply Chain Leader
instituteforsupplymanagement.org
Delivering Open Content To The Market
Current State
instituteforsupplymanagement.org
Descriptors
instituteforsupplymanagement.org
Current State
instituteforsupplymanagement.org
Business Pain
10
instituteforsupplymanagement.org
9 out of 10 Supply Chains are Stuck
instituteforsupplymanagement.org
Since 2000, 52 percent of the companies in the Fortune
500 have either gone bankrupt, been acquired, ceased
to exist, or dropped out of the Fortune 500.
Activist campaigns against companies with a market
cap greater than $10 billion has more than doubled
since 2010. Activists won, partially won or settled 73%
of proxy fights in 2014, up from 55% in 2010.
instituteforsupplymanagement.org
Dow Chemical Company Performance
Understanding Supply Chain
Organizations
instituteforsupplymanagement.org
Current Organizational Design
instituteforsupplymanagement.org
Talent Risk
instituteforsupplymanagement.org
Centers of Excellence: Focus
Little
Emphasis on
Supplier
Development
Risk Management
instituteforsupplymanagement.org
Risk Definition
instituteforsupplymanagement.org
Risk Drivers
instituteforsupplymanagement.org
Impact on Financial Reporting
instituteforsupplymanagement.org
Disruptions
instituteforsupplymanagement.org
Shifts in Ocean Cargo
instituteforsupplymanagement.org
Characteristics of Top Performers
Most Mature:
• Higher # of
Disruptions
• Focus of
Leadership Team
• Supplier
Monitoring
instituteforsupplymanagement.org
Current State
instituteforsupplymanagement.org
Supplier Visibility
instituteforsupplymanagement.org
Seeing Beyond the Firewall
instituteforsupplymanagement.org
B2B Connectivity
instituteforsupplymanagement.org
Corporate Social Responsibility
instituteforsupplymanagement.org
• We can outsource our supply chain,
but we cannot outsource risk. We must
own it.
• Issues abound:
• Activism abounds.
• Supplier viability. We have not
owned the network.
• B2B visibility is an issue. We have
made very little progress in
visibility in the last decade.
• Middle-management talent a
growing risk.
• Ports and transportation
infrastructure delays will grow.
instituteforsupplymanagement.org
#SCIWEBINAR
2 0 5 5 E . C e n t e n n i a l C i r c l e
T e m p e , AZ 8 5 2 8 4
Lora Cecere
Founder Supply Chain Insights
Lora.Cecere@supplychaininsights.com
617-816-9137
Blog: Supplychainshaman.com
Community: Beetfusion.com
THANK YOU

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