Supply Chain Risk And What About Ethics?
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Supply Chain Risk And What About Ethics? Lee Buddress, Ph.D., C.P.M. Robert G. Gleason Professor and Director Supply and Logistics Program Portland State University
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Supply Chain Risk And What About Ethics?. Lee Buddress, Ph.D., C.P.M. Robert G. Gleason Professor and Director Supply and Logistics Program Portland State University. Supply Chain Risk. Events or actions that result in a transaction or project differing from budget or plan - PowerPoint PPT Presentation
Transcript of Supply Chain Risk And What About Ethics?
Supply Chain RiskAnd What About Ethics?
Lee Buddress, Ph.D., C.P.M.Robert G. Gleason Professor and Director
Supply and Logistics ProgramPortland State University
Supply Chain RiskEvents or actions that result in a
transaction or project differing from budget or plan
Events or actions that prevent delivery to customers as promised
Order Winning Characteristics Design Lead Time Cost Quality/Durability Service
What Risks Most Impact Ability to Serve Customers Profitability
Supply Management ObjectivesContinuity of SupplyLeast Total Cost of OwnershipCreate Competitive AdvantageSustainable
What Risks Interfere With These Objectives
Supply Chain RisksBig, Expensive Risks with Low
ProbabilityMedium Risks with Medium ProbabilitySmaller Risks with High Probability
External Risks
Supply Chain Risk Classification
External Risks Governmental Infrastructure Supplier Logistical Price Terrorism Natural Disasters Accidents
External Risks: GovernmentalExport Policies Intellectual Property ProtectionProtective Tariffs and DutiesRegulatory ChangesTaxesCurrency FluctuationsPolitical Unrest
External Risks: InfrastructureRoadsRailroadsPorts
River Sea
AirportsCongestionDomestic Infrastructure
External Risks: Suppliers Operational
Equipment Facilities
Management Financial Cultural/Language Labor Scalability
Quality Lead Times Monopoly/Oligopoly Technology
Communication Operational
Sustainability Social Responsibility
External Risks: LogisticsSupplier SelectionTransportation EquipmentOn TimeFreight DamageLeakage/Shrinkage
External Risks: PriceTrendsVolatility
External RisksTerrorism
Physical Harm Personnel Cyber Attacks/Hacking
Natural Disasters Earthquakes, Tsunamis Weather Related
Lightening StrikesAccidents
Key External RisksLabor IssuesQualityTimingSupplier Selection Process
Total Cost Analysis
Things to WatchEast & Gulf Coast Longshore ContractWest Coast Longshore Grain ContractOngoing Row Over Refer Plug-ins
Port Subsidizes Shipping Firms Carriers Add $150 per Container
UPS/Teamsters Contract NegotiationsNew Panama Canal EU/ Airline Row Over Carbon EmissionsCarrier Capacity Constraints
Internal Risks
Supply Chain Risk Classification
Internal Risks Policies Resources Operational
Internal Risks: Policies Outsourcing Low Bid Freight Terms Managing
Reverse Logistics Excess Inventory Repairs Sustainability/Social
Responsibility
No Standardization Equipment Procedures
No Formal Strategies Not Having Policies
Internal Risks: ResourcesLaborFinancesEquipmentTechnology
Automation Communication Enterprise
Internal Risks: OperationalPersonnel
Numbers, ExpertiseDemand Management
Customer Supplier
ForecastingProject ManagementSpecifications
Order Winning Characteristics Design Lead Time Cost Quality/Durability Service
What Risks Most Impact Ability to Serve Customers Profitability
Risk Prevention/Remediation Safety Stock Safety Lead Time Additional Suppliers Geographic
Dispersion Ts and Cs Business Continuity
Ours Suppliers Training
ISO 31000 2009 Supply Chain
Mapping Forecasting Project
Management Review Supplier
Selection Process Supplier Visits Daily Diligence
Key Risk Management ActivityHow Suppliers Are ChosenSupplier VisitsSupplier MappingForecastingDaily Diligence
Risk and Ethics
EthicsMore than Gifts and Gratuities
Cialdini’s Influence Appearances
Unethical Sales Practices Commercial Bribery False Shortages False Price Breaks Market Allocation False Delivery Promises Quotation vs. Invoice False Representation Counterfeit Back Door Selling
Unethical Purchasing Practices
Shopping Bids Shopping Ideas Samples Favoritism Payment Terms Contract Quantities Conflict of InterestInternational Ethics Issues
Cultural Issues Reciprocity
Foreign Corrupt Practices Act Illegal to Make Payments Influencing
Purchase DecisionsExempts “Processing Payments”Accounting Requirements
Applies to ALL Publicly Traded Companies
Risk and EthicsRisks to the Organization
Customer Loss Reputation
Personal Risks Job Reputation Personal Liability
Columbia River Bar
http://www.youtube.com/embed/ByGSMmenPDM?rel=0
Questions, Comments, Observations, Conclusions,
Arguments?
