Post on 21-Jan-2015
description
10 april 2023
Mastering Supply Risk“Everybody needs to do it”
Drs. M. Nieuwboer CSCP
10 april 2023
Everybody needs to use supply risk management!
• On average, news of a supply risk is associated with a nearly 11% decrease in stock price. The stock market reaction is negative for 75% of the announcements.
• 79% of all companies wants to have SC risk management.
• 96% of the companies in process industries is using some form of supply risk management.
• 84% of supply managers sees benefits is thorough risk-understanding
• Supplier failure is seen as the No 1. threat.
• Supply risks will increase in a globalizing world
Are you using supply chain risk?
And they have learned it the hard way:
• Daimler-Chrysler, Volvo, Jaguar, Toyota
• Cisco, Ericson
• Nike
• Shell, Arkema, Huntsman
10 april 2023
An integrated approach to supply chain risk management
Risk management
is a continuous
process
Risk management
is a cross-functional
activity
December 2008 4
Integrate your risks strategies with your long term corporate strategies.
What do you want to do and which
risks do you want to know?
1. Define and revise your risk strategy
Result: Formalized and aligned risk management strategy
December 2008 5
-High level document which describes companies view on risk.
-Rules and procedures about risk management.
-Roles and responsibilities overview, agreed by top management.
-Impact analysis refined risk strategy.
Deliverables: Define and revise your risk strategy
Result: Formalized and aligned risk management strategy
December 2008 6
•Set criteria for categorizing products and processes in portfolio.
•Collect high level data for risk score-cards (f.i. RPI).
•Analyze product and process portfolio.
•Estimate probability and impact.
2. Quick Scan
Result: Each product group and process is categorized
December 2008 7
•Prioritize product groups
•Establish supplier dependency for selected groups (bottom / top line impact)
•Analyze market dynamics
•Assessment of supplier reliability
2.1 Product and process profiling
Result: A dashboard & analysis for each product group and process
December 2008 8
• Deep analysis of the value chain for selected processes and products
• Value chain mapping for thorough risk understanding
• Complete risk matrix
2.2 Value chain analysis
Result: Deep understanding of value chain and sources of risk
December 2008 9
•Supply risk overview and prioritization
•Detailed probability/impact matrix
•Financial impact calculation
•Analyzed product and process portfolio.
•Calculation of probability and impact.
Deliverables
Result: Each product group and process is categorized
December 2008 10
Deliverables examples
manufacturing1st tiersuppliers
distribution customers
Prof USA
Retail China
Retail A/P
Retail Latam
Retail USA
Supply chain characteristics: physical map
Retail W-EU
OEM W-EU
EuropeRDC
EuropeNSO
USARDC
A/PRDC
NAFTANSO
2nd tiersuppliers
Europe
NorthAmerica
Asia/Pacific
Latam
OPU
PCB
Housing
Housing
PCB
LoaderAssembly
China
AssemblyHasselt
IC
SOURCE MAKE DELIVER
SOURCE MAKE DELIVER
SOURCE MAKE DELIVER
SOURCE MAKE DELIVER
SOURCE MAKE DELIVER
SOURCE MAKE DELIVER
SOURCE MAKE DELIVER
DELIVER
DELIVER
MAKE DELIVER
MAKE DELIVER
DELIVER
DELIVER DELIVER
Exam
ple
probability
Impact
December 2008 11
• Prepare treatment plan for selected risks.
• Visualize benefits en costs treatment
• Sign-off by senior management
• Implement treatment
3. Supply risk treatment
Result: Reduction and acceptation of risks.
December 2008 12
• Review risk management approaches
• Check compliance with new risk management strategies
• If required fine-tune methodology
4. Monitor
Result: Alignment of treatment, actual situation and corporate strategy
December 2008 13
Drs. Michael Nieuwboer CSCP is as a senior supply chain consultant at Coppa , specialized in (global) sourcing, risk management and logistics. Michael worked on projects in the EU, USA and Asia.
Michael has gained large expertise in the Hightech and process industry
He has had his education mainly at the Cranfield University and Radboud University. He is also a columnist for supply chain online and has won an external achievement award.
In his spare time, he likes to work with old Porsches or play football at his club NEC.
About the author
For more information: Michael.nieuwboer@coppa.nl or 0031-(0)628902893