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Supply Chain Risk never sleeps, do you?
Nick Wildgoose
Global Supply Chain Product Leader
Tim Astley,
Regional Practice Leader, Strategic Risk & Business Resilience
Zurich Insurance
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Still a Major Opportunity! Results summary – not getting better quickly enough
Executive Support and its importance
Need for comprehensive risk assessment
How technology and big data can help
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• One in three organizations (34%) have
experienced cumulative losses of over €1 million due to supply chain disruption.
Loss Picture 70%
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• Organizations reporting 11 or more supply chain disruptions have increased from 7% to 22%.
Frequency
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• The increased cost in disruption may be attributed to rising figures reporting loss of productivity (68% from 58%), cost of working (53% from 39%) and damage to brand or reputation (38% from 27%).
Impacts
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• Organizations reporting high top management commitment to supply chain resilience have
decreased from 33% to 27%.
Top Management Commitment
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Benefits
- Understand value at risk from supplier failure
- Increased cost of working to overcome disruptions
- Management time
- Near miss costs
- Linking to other initiatives for cost synergies e.g. CSR
– Reputational damage
Costs
– Staff investment
– Potential technology/software investment
Business Case
Executive Support
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Aligning your reward structures
Communication between your functions
Information flows with common understanding
Is your organizational structure correct and is it clear who owns supply chain risk
Alignment with your critical suppliers
Overcoming the Silos
Executive Support
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9
Supply Chain Risk Assessment
Consider ‘value’ not ’supply’ (work backwards!)
What are the KPIs?
Where is greatest value created?
How do supplies flow to these key value points?
Where are the potential bottlenecks?
What could go wrong?
How robust is the supply chain?
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10
External environment
Economic Geographic Political Structural
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11
Process
Product
management /
new product
development
Supplier selection
management
Supplier
management
(financial
strength)
Supply chain
performance
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People and Process
Internal risk
management
Business continuity
management
Vulnerability to
accidents / errors
Vulnerability to
malicious
intervention
Regulatory issues Skills and IP
management
Commercial
contract
management
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13
Organisation networks (suppliers)
Suppliers risk
management
Suppliers
relationships
Suppliers skills and
experience
Skills and IP
management
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14
Supply chain risk factors
Suppliers risk
management
Suppliers
relationships
Suppliers skills and
experience
Skills and IP
management
Internal risk
management
Business continuity
management
Vulnerability to
accidents / errors
Vulnerability to
malicious
intervention
Regulatory issues Skills and IP
management
Commercial
contract
management
Product
management /
new product
development
Supplier selection
management
Supplier
management
(financial
strength)
Supply chain
performance
Economic Geographic Political Structural
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Risk scenario development
Vulnerability Trigger Consequence Mitigation
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Technology and Big Data
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17
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18
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Key Logistics Hub
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Supplier Dependence
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Conclusions
Executive Support need to develop the business case
Silo alignment
Supply Chain Risk assessment based on a segmented approach
Technology and Big Data
21
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THANK YOU
Contact
Nick Wildgoose, Global Supply Chain Product Leader
Email: [email protected]
Mobile +447875886068
