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Supply chain vulnerability to risk
- 1. GLOBAL SUPPLY CHAIN MANAGEMENT Presentedby Ayebare Eunice Kato Hanifa Nabankema Nangobi Rehema Musuya Wananda Patricia
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- 4. Global Supply chain: distribution of goods and services through out a transnational company’s global network to maximize profit and minimize waste. It involves information, people , processes and resources involved in the production, handling and distribution of ,materials and finished products or providing a service to a customer. Risk is the uncertainty that a loss may occur or not. It implies future uncertainty about deviation from expected earnings or out come.
- 5. suppliers Parties in globalsupply chain producers distributor Provides the raw material needed by the company Major source of providing raw materials Purchase product from manufacturer s and sell them to customers. Logistics The main company and organization purposes to transform raw materials to finished products Planning, implementation, control of forward and reverse flow of goods and services and information between origin and consumption customers
- 7. Vulnerabilities 1 2 3 4 Lack of visibilityand control procedures Long lead time (the bull whip effect) Outsourcing of vulnerable locations Limited redundancy
- 8. Vulnerabilities 5 6 7 8 Trend to outsourcing Reduction of the supplier base Focus on efficiency rather than effectiveness Accumulation
- 9. CASES KFC no chickensaga . Reduction of the supplier base Apple out sourcing Nike Out sourcing Inter related networks Yahoo > identity theft. google
- 10. Failure to identifyexposures. Main suppliers Logistics Distributor Distributors • Suppliers • retailers • Customers • Sales agents Logistics • Air • Marine • Car fleet • Transport companies • Train Factory • Factory • Subsidiaries • Branches • Ware house Main suppliers • Raw materials • Supplements • Supplier of supplier • Suppliers Final consumer Final customers • Shops • Stores • Supermarkets • Malls • customers Factory
- 11. Lack of informationof finished goods distributor Discounts Gifts Customers Feed back of customers complaints. New needs prices supplier Lead time Tastes and preferences. producer Market trends supplier Prices
- 12. transparency. Supplier assessment policy communication 05 02 03 04 01 Lack ofvisibility and control procedures Transparency Organization policy .
- 13. Accumulation Accumulation of products. Accumulation of suppliers. Large levels of inventory . Wide base of suppliers Location of these suppliers .
- 14. Increasingly interrelated networks. hackers- 11% Data threats- 20% viruses -9% Soft wares - 60% Complexity Analysis Presence of high levels of technology Hackers Data threats Viruses Soft wares
- 15. The type ofcyber-attack that occurred was identity theft.
- 16. Reduction of thesupplier base 01 02 03 04 Failure from a single source . Heavy responsibility Focus on single source. Disruptions cause complete failure. Case Kentucky Fried Chicken
- 18. Redundancy Long chains promoteredundancy 80 % Suppliers and retailers in a supply chain are always redundant Many customers High fleet to supply Government involvement Low policies Low standards Low company involvement Supervision
- 19. Focus on efficiencyrather than effectiveness 30% 50% 10% 10% What can I do. What must I do. Quantity production vs. quality production Beat deadlines vs. meet taste Transportation not delivery Competitor vs. customer
- 20. Just in time(JIT) No space to recollect quality Complaints are not attended to in time Repetitive manufacturing functions Decrease costs Few suppliers Inventory management. Enough inventory to meet immediate production needs Accurately forecast demand
- 22. Focused factories andcentralized distribution Miss calculation of demand and supply Over running of machines. Excessive production . Fraud Timely production.
- 23. Supplier to supplier Businessto business Distributor Retailer Raw materials
- 24. Long lead time(the bullwhip effect) Chains involve cross country suppliers, information about demand and supply takes days, weeks or even months to be communicated across the supply chain. This causes demand elasticity to be amplified causing one to move further away from the customer. Causes Vulnerability Bullwhip effect • Delay to receive news. • Long Lead time. • Supplier reluctance . • Trends in demand • Information delay
- 25. Outsourcing of vulnerablelocations Drop in quality Failure to meet recommendations End of production Halt in business Communication Feed back Transportation Loss of customers loss of sales Failure to distribute .
- 27. Trend to outsourcing US. California China Taiwan South Korea Japan US china. World wide product Ireland Design manufacturing Spare parts Testing assembling Final product Brooks Kraft California
- 28. Global supply chainvulnerabilities The continuous globalization ,growth of companies and increasing competition are the main catalysts for heavy expansion and the interconnectedness of Global supply chains. This creates many loopholes in the supply chain that may be under looked provoking vulnerability in the supply chain Summary
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- 30. Thank You Presentation by AyebareEunice Kato Hanifa Nabankema Nangobi Rehema Musuya Wananda Patricia