The document is a group presentation on supply chain vulnerability. It discusses various causes of supply chain vulnerability including risks within the supply chain from lack of visibility and inaccurate forecasts as well as external risks from natural disasters, terrorism, and industrial action. Specific factors are also examined like globalized supply chains, outsourcing, and reduction in the supplier base. The presentation concludes by outlining approaches to supply chain risk management including identifying risks, analyzing their potential impact, and designing appropriate responses to reduce prevention and mitigate consequences.
the various factors that expose a global supply chain to risk. also known as the vulnerability of global supply chains to risks. case study's from KFC, YAHOO, APPLE, INTEL, NIKE companies to learn how this affected them.
Preventing and Managing Supply Chain DisruptionsThomas Tanel
Ā
Supply chains worldwide have been battling various risks and challenges for some time. Each challenge not only threatens to disrupt operations, but also may have a negative financial impact on business performance and prevent an organization from meeting the demands from stakeholders, customers, shareholders, and regulators.
Supply Chain Council members have reported that less than half of enterprises have established metrics and procedures for assessing and managing supply risks and organizations lack sufficient market intelligence, process, and information systems to effectively predict and mitigate supply chain risks. Does this sound like your organization?
f so, supply chain disruptions can be extremely costly. A disruption in your supply chain can cost millions of dollars in lost time, energy and resources. Their effects are both direct (e.g. halting production altogether) and indirect (e.g. on stock values). Taking steps to help reduce supply chain disruption is the only way to avoid these costs.
Proactive discovery and visibility of risks is the key to the prevention and management of supply chain disruptions.
A lesson from the pandemic is the strategic and critical importance of supply chain management. With that goes the need for supply chain resilience. Both inside and outside four walls. It started out about technology, but as the pandemic continued, logistics and logistics infrastructure is showing as a key for supply chain resilience. View these for content that may assist you to make your supply chain resilient.
In many organisations, Procurement is beginning to see Risk as part of their responsibilities, second only to savings. In this presentation we will look at identifying risk and consider how it might be treated to arrive at the best Risk solution for your organisation.
the various factors that expose a global supply chain to risk. also known as the vulnerability of global supply chains to risks. case study's from KFC, YAHOO, APPLE, INTEL, NIKE companies to learn how this affected them.
Preventing and Managing Supply Chain DisruptionsThomas Tanel
Ā
Supply chains worldwide have been battling various risks and challenges for some time. Each challenge not only threatens to disrupt operations, but also may have a negative financial impact on business performance and prevent an organization from meeting the demands from stakeholders, customers, shareholders, and regulators.
Supply Chain Council members have reported that less than half of enterprises have established metrics and procedures for assessing and managing supply risks and organizations lack sufficient market intelligence, process, and information systems to effectively predict and mitigate supply chain risks. Does this sound like your organization?
f so, supply chain disruptions can be extremely costly. A disruption in your supply chain can cost millions of dollars in lost time, energy and resources. Their effects are both direct (e.g. halting production altogether) and indirect (e.g. on stock values). Taking steps to help reduce supply chain disruption is the only way to avoid these costs.
Proactive discovery and visibility of risks is the key to the prevention and management of supply chain disruptions.
A lesson from the pandemic is the strategic and critical importance of supply chain management. With that goes the need for supply chain resilience. Both inside and outside four walls. It started out about technology, but as the pandemic continued, logistics and logistics infrastructure is showing as a key for supply chain resilience. View these for content that may assist you to make your supply chain resilient.
In many organisations, Procurement is beginning to see Risk as part of their responsibilities, second only to savings. In this presentation we will look at identifying risk and consider how it might be treated to arrive at the best Risk solution for your organisation.
This presentation provides an introduction to the key concepts of the sustainable supply chain, providing definitions of sustainability, explaining climate change and the ways that supply chains can be expected to change in the future, as a result of the need to "go green".
Green design principles are introduced, including the need to avoid creating a "monstrous hybrid". The limitations of recycling are explained and the need for business models centred upon reuse is made clear. The presentation is designed for use at HE5 and HE6 (UK second year or final year Bachelors degree) but it could also be of interest to companies and individuals.
The slides are downloadable, and the download includes presenter notes ā plus a short sustainability game that was used in class.
The VUCA world has moved to an entirely new level due to COVID-19, and we have seen first-hand how fragile our supply chains can be. We are already seeing changes in global supply chains and market regulations. But the availability and reliability of product deliveries will become much more demanding, not only to accommodate for daily volatility in businesses but also to make sure that we are prepared for the unknown in the future.
In this short webinar, we will discuss how to design resilient supply chains. We will be touching on topics such as alternative sourcing strategies, how to ensure faster decision-making and how to redesign supply chains to be both efficient and resilient.
What is supply chain risk? What are typical supply chain risks? This is the 2011 version of my annual lecture on Supply Chain Risk for the MSc in Supply Chain Management and Industrial Logistics at Molde University College, Norway
Understand the relationship between supply chain management (SCM) and organisational business objectives
Explain the importance of effective supply chain management in achieving organisational objectives
Explain the link between supply chain management and business functions in an organisation
Discuss the key drivers for achieving an integrated supply chain strategy in an organisation
Be able to use information technology to optimize supplier relationships in an organisation
Evaluate the effectiveness of strategies used by an organisation to maintain supplier relationships
Task 2.2: Use information technology to create strategies to develop an organisationās relationship with its suppliers
Develop systems to maintain an organisationās relationship with its suppliers
Case Study of a maintaining organizationās relationship with suppliers:
Understand the role of information technology in supply chain management
Assess how information technology could assist integration of different parts of the supply chain of an organisation
Task 3.2: Evaluate how information technology has contributed to the management of the supply chain of an organisation
Assess the effectiveness of information technology in managing the supply chain of an organisation
Understand the role of logistics and procurement in supply chain management
Explain the role of logistics in supply chain management in an organisation
The development of COVID-19 and its impact on global business has highlighted the vulnerability of supply chains to rapid disruptions. Many companies are struggling with both changed demand patterns and disrupted supply situations, as the effects of the virus outbreak extend further than anticipated.
We donāt know the full impact of COVID-19 on our businesses, and we canāt predict what is in store for the future.āÆBut we can reflect on previous supply chain disruptions and apply past learnings to the current situation.
Supply chain risk and resilience, dealing with demand and supply challenges, and the importance of planning during times of great uncertainty such as the current Covid19 coronavirus crisis. Presented for Business Gateway Tayside: An hour with Daniel Muir, Supply Chain Scotland, April 2020
Want to present your companyās supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your companyās supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed.
This presentation provides an introduction to the key concepts of the sustainable supply chain, providing definitions of sustainability, explaining climate change and the ways that supply chains can be expected to change in the future, as a result of the need to "go green".
Green design principles are introduced, including the need to avoid creating a "monstrous hybrid". The limitations of recycling are explained and the need for business models centred upon reuse is made clear. The presentation is designed for use at HE5 and HE6 (UK second year or final year Bachelors degree) but it could also be of interest to companies and individuals.
The slides are downloadable, and the download includes presenter notes ā plus a short sustainability game that was used in class.
The VUCA world has moved to an entirely new level due to COVID-19, and we have seen first-hand how fragile our supply chains can be. We are already seeing changes in global supply chains and market regulations. But the availability and reliability of product deliveries will become much more demanding, not only to accommodate for daily volatility in businesses but also to make sure that we are prepared for the unknown in the future.
In this short webinar, we will discuss how to design resilient supply chains. We will be touching on topics such as alternative sourcing strategies, how to ensure faster decision-making and how to redesign supply chains to be both efficient and resilient.
What is supply chain risk? What are typical supply chain risks? This is the 2011 version of my annual lecture on Supply Chain Risk for the MSc in Supply Chain Management and Industrial Logistics at Molde University College, Norway
Understand the relationship between supply chain management (SCM) and organisational business objectives
Explain the importance of effective supply chain management in achieving organisational objectives
Explain the link between supply chain management and business functions in an organisation
Discuss the key drivers for achieving an integrated supply chain strategy in an organisation
Be able to use information technology to optimize supplier relationships in an organisation
Evaluate the effectiveness of strategies used by an organisation to maintain supplier relationships
Task 2.2: Use information technology to create strategies to develop an organisationās relationship with its suppliers
Develop systems to maintain an organisationās relationship with its suppliers
Case Study of a maintaining organizationās relationship with suppliers:
Understand the role of information technology in supply chain management
Assess how information technology could assist integration of different parts of the supply chain of an organisation
Task 3.2: Evaluate how information technology has contributed to the management of the supply chain of an organisation
Assess the effectiveness of information technology in managing the supply chain of an organisation
Understand the role of logistics and procurement in supply chain management
Explain the role of logistics in supply chain management in an organisation
The development of COVID-19 and its impact on global business has highlighted the vulnerability of supply chains to rapid disruptions. Many companies are struggling with both changed demand patterns and disrupted supply situations, as the effects of the virus outbreak extend further than anticipated.
We donāt know the full impact of COVID-19 on our businesses, and we canāt predict what is in store for the future.āÆBut we can reflect on previous supply chain disruptions and apply past learnings to the current situation.
Supply chain risk and resilience, dealing with demand and supply challenges, and the importance of planning during times of great uncertainty such as the current Covid19 coronavirus crisis. Presented for Business Gateway Tayside: An hour with Daniel Muir, Supply Chain Scotland, April 2020
Want to present your companyās supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your companyās supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed.
Implement Consulting Group has summarised the strategic levers into five supply chain megatrends.
1.Multiple Supply Chains
2. Move On or Move Home
3. Green and Sustainable Supply Chains
4. Global Supply Chain Risk Management
5. Managing Supply Chain Complexity
This white paper discuss on building a supply chain beyond risks factors surrounding organization operations. Companies today work on several supply chain strategies to improve their supply chain.
Risk factors in as-is process and how to eliminate those risks.
This paper introduces the concept of Supply Chain Risk
Management. It identifies various risks and explains the process of managing these risks. With technology in place, automation of some of the processes brings down the risks involved. Sadly, many companies are not adequately automated to address these issues. The paper also highlights how information technology can be adopted in certain areas in supply chain to ensure visibility and reduce risk occurrence.
The primary responsibility of the post-close supply chain transition team is to achieve and maintain uninterrupted upstream supply and an excellent downstream customer experience while delivering the projected savings from the combined company. This presentation provides guidance on ways to identify, assess and avoid or minimize opportunities for supply chain disruption immediately after closing, as well as best practices for successful supply chain consolidation and integration.
Larry Savage Birmingham Points out the Challenges in Logistics IndustryLarry Savage Jr
Ā
Over time, every brand wants to grow and continue to attract and serve current and new customers. Unfortunately, reaching this goal requires more complexity. It is important to remember that there is a wide range of issues and potential solutions in the field of global supply chains. Companies require assistance in grasping the genuine expenses associated with supply chain intricacy. Understanding of these unexpected complexities on day-to-day operations, material accessibility, and crucial customer service and satisfaction poses a challenge. Below, we will discuss the underlying causes of supply chain complexity.
In this, we will read about the Supply Chain Management in Healthcare
The following contents will be described briefly:-
1. What is a supply chain?
2. The process of Views of Supply Chain
3. Objectives of Supply Chain Management
4. Supply Chain Decisions
5. Benefits of Supply Chain
6. Integrated Health Supply Chains
7. New Trends In Healthcare Supply Chain
8. Potential Risks to an Organization and Supply Chain
9. Strategies to Improve Healthcare Supply Chain Management
Supply chain risk management material. Its most important areas of study know attracting academic scholar and practitioner. supply chain risk management is fast growing
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Ā
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.š¤Æ
We will dig deeper into:
1. How to capture video testimonials that convert from your audience š„
2. How to leverage your testimonials to boost your sales š²
3. How you can capture more CRM data to understand your audience better through video testimonials. š
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
Ā
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Ā
Discover the innovative and creative projects that highlight my journey throughĀ Full Sail University. Below, youāll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Ā
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Business Valuation Principles for EntrepreneursBen Wann
Ā
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
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Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Improving profitability for small businessBen Wann
Ā
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
3. INTRODUCTION
ā¢ For the purposes of this presentation Supply Chain Vulnerability
(SCV) is a point of weakness and/or possible threat to the supply
chain network. These complex networks may increase the number
of potential weaknesses in surety of supply, as may the use of other
modern business practices.
ā¢ The shift towards leaner supply networks during recent years has
resulted in these networks becoming more vulnerable. In particular,
there often tends to be very little inventory in the system to ābufferā
any interruptions in supply and, therefore, any disruptions can have
a rapid impact on the supply network.
4. CAUSES OF SUPPLY CHAIN VULNERABILITY
ā¢ Extending over several tiers, present numerous risks. Broadly, those
risks can be classified into two types : risks arising within the supply
chain and risks external to it.
ā¢ Risk within the supply chain arises from interaction between constituent
organisations across the supply chain. It is caused by sub-optimal
interaction and co-operation between the entities along the chain. Such
supply chain risks result from a lack of visibility, lack of āownershipā, self-
imposed āchaosā, just-in-time practices and inaccurate forecasts.
ā¢ The internal risks are those that appear in normal operations such as late
delivery, excess stock, poor forecasts, financial risks, minor accidents,
human error, faults in information technology.
ā¢ External risks arise from interactions between the supply chain and its
environment.
Such interactions include disruptions caused by strikes, terrorism and
natural catastrophes. Any disruption at any stage in a supply chain that
can be linked to environmental causes is ascribable to external risks.
5. Causes of Vulnerability
ā¢ There are a number of factors that may lead to vulnerability in Supply Chain
Management. These can be Internal and External and below a:-
1) natural disasters (e.g. Floods in some parts of the country affected so
many things.
2)Terrorist incidents (e.g. events in the USA on 11th September 2001and
the recent on in Kenya)
3)industrial or direct action (e.g. the fuel price protest of September 2000,
which very rapidly impacted on almost every supply network in the U.K.);
4) Accidents (e.g. a fire that gutted the Mulli Brothers Warehouse)
5) operational difficulties (e.g. production or supply problems at one supplier
can impact every organisation in the supply network).
6) Lack of ownership due to blurring or boundaries between buying and
suppling originations arising from factors such as outsourcing and creation
of complicated networks of business relationships with confused lines of
responsibilities.
6. 7) Chaos risks due to mistrust and distorted information throughout the
supply chains. An example is the so called bullwhip effect, in which
fluctuations in orders increase as they move upstream from retailers to
manufactures to suppliers.
8) Decision risk due to chaos that makes it impossible to make the right
decision for every player in the supply chain.
9) Just in time relationship risks due to the fact an enterprise has little
capacity or stock in reserve to cater for disruptions in the supply chain
due to late deliveries, such as transport breakdowns.
10) Inertia risks due to a general lack of responsiveness by customers or
suppliers to changing environmental conditions and market signals with
consequential inability to react to completion moves or market
opportunities.
7. Factors contributing to supply chain vulnerability
ā¢ Whilst risk has always been present in the process of reconciling supply
with demand,there are a number of factors which have emerged in the last
decade or so which might be considered to have increased the level of risk.
These include:
ā¢ A focus on efficiency rather than effectiveness
ā¢ The globalisation of supply chains
ā¢ Focussed factories and centralised distribution
ā¢ The trend to outsourcing
ā¢ Reduction of the supplier base
ā¢ Volatility of demand
ā¢ Lack of visibility and control procedures
8. Factors contributing to supply chain vulnerability,
CONTINUEā¦ā¦ā¦ā¦.
ā¢ These factors are considered below in more detail.
A focus on efficiency rather than effectiveness
ā¢ The prevailing business model of the closing decades of the twentieth century was
very much based upon the search for greater levels of efficiency in the supply chain.
Experience highlighted that there was significant opportunity in many sectors of
industry to take out significant cost by focusing on inventory reduction. Just-in-time
(JIT) practices were widely adopted and organisations became increasingly
dependent upon suppliers. This model, whilst undoubtedly of merit in stable market
conditions, may become less viable as volatility of demand increases. The challenge
in todayās business environment is how best to combine āleanā practices with an āagileā
response.
The globalisation of supply chains
ā¢ There has been a dramatic shift away from the predominantly ālocal for localā
manufacturing and marketing strategy of the past. Now, through offshore sourcing,
manufacturing and assembly, supply chains extend from one side of the globe to the
other. For example, components may be sourced in Taiwan, sub-assembled in
Singapore with final assembly in the USA for sale in world markets.
ā¢ Often the motivation for off-shore sourcing and manufacturing is cost. However, that
definition of cost is typically limited to the cost of purchase or manufacture. Only
rarely are total supply chain costs considered. The result of these cost-based
decisions is often higher levels of risk as a result of extended lead-times, greater
buffer stocks and potentially higher levels of obsolescence ā particularly in short life-
cycle markets. A further impetus to the globalisation of supply chains has come from
the greater increase in cross-border mergers and acquisitions that we have
witnessed over the last decade or
9. ā¢ There is a strong logic behind this based upon the view that organisations
are more likely to succeed if they focus on the activities in which they have
a differential advantage over competitors.
ā¢ This increases the operational costs. For example, if you outsource from
South Africa, shipping and transport costs will be high.
ā¢ Lack of customer focus
ā¢ Sourcing and supply base management also have an effect on vulnerability
by increasing dependency on fewer suppliers.
Reduction of the supplier base
For a long time this has resulted into a dramatic reduction in the number of
suppliers from whom an organisation typically will procure materials,
components, services, etc. In some cases this has even extended to āsingle
sourcingā; whereby one supplier is responsible for the sole supply of an item.
10. The trend to outsourcing
Outsourcing also brings with it a number of risks, not least being the potential
loss of control. Disruptions in supply can often be attributed to the failure of one
of the links in the chain and, by definition, the more complex the supply network
the more links there are and hence the greater the risk of failure
Lack of visibility and control procedures
āVisibilityā refers to the ability of all members of a chain to see from one end of
the pipeline to another; an undistorted view not clouded by intermediate
inventories or other barriers to vision. Lack of visibility forces supply chain
members to rely on forecasts and to build buffers which themselves only
worsen the situation. Unfortunately it is often the case that members of the
supply chain do not have detailed knowledge of what is happening in the rest of
the chain ā for example, information on finished goods inventory, material
inventory, work-in-process, demand levels, production plans, capacity, yields,
order status and so on.
11. SUPPLY CHAIN RISK MANAGEMENT
ā¢ Supply chain risk management aims at identifying the areas of potential risk
and implementing appropriate actions to contain that risk. Therefore it can
be defined as : āthe identification and management of risks within the supply
chain and risks external to it through a co-ordinated approach amongs
supply chain members to reduce supply chain vulnerability as a whole.ā
ā¢ There are also some ways to deal with, or manage each risk that one
identifies in supply chain networks or any other business as follows:
ā¢ Accept it because the cost of eliminating it may be too high
ā¢ Transfer it, e.g. if the product was insured.
ā¢ Reduce it by taking safety measures.
ā¢ Eliminate it
12. It is possible to identify four issues that foster success in supply chain continuity
management:
ā¢ Risk awareness among top managers
ā¢ Risk management as an integrated part of supply chain management
ā¢ Each individual employee in each entity must have
a) risk awareness
b) understanding of his/her role in the processes.
ā¢ Understanding that changes in business strategy change supply chain risk
profiles.
13. Risk Management can be of paramount importance in the
following way:-
1. Improves decision making, planning and prioritization.
2. Smoother and more reliable operations.
3. It helps to allocate capital and resources more efficiently.
4. It allows to anticipate what may go wrong, minimizing the amount of fire
fighting you have to do or in worst case scenario preventing a disaster or
seriously financial loss.
5. It improves the probability that you will deliver your business plan on time
and to budget.
6. There will be an increase in revenue.
7. Operations are constantly monitored to identify emerging problems.
14. HOW CAN SUPPLY CHAIN RISK MANAGEMENT ACHIEVED
1. Identify risks to the supply chain: This examines the supply chain,
defining the separate activities and their relationship, and systematically
studying these to find areas of risk.
2. Analyze the risks: Having identified the risks, the next step is to consider
their potential impact.
3. Designing Appropriate Responses to the risk: This is to know the
seriousness of the risks and consider different ways of dealing with them.
The following are the types of responses to risk.
a) Prevention to reduce the probability of risk event occuring.
b) Mitigation: To reduce the consequences.
c) Response: Waiting to evaluate actual events before deciding in a
response.
15. Supply chains are vulnerable to risks, and the level seem to be rising. And the
Supply Chain Risk Management has a role to deal with these risks. This will
increase the trust of various stakeholders in the field.
Conclusion