Supply Chain Risk
21
September 2018 SUPPLY CHAIN RISK MANAGEMENT: Get ahead of the legal and reputational issues caused by poor suppliers
Transcript of Supply Chain Risk
September 2018
SUPPLY CHAIN RISK
MANAGEMENT:
Get ahead of the legal and
reputational issues caused
by poor suppliers
www.redflaggroup.com
Scott Lane
CEO and Chairman
The Red Flag Group®
Rich Hoffecker
Product Director of Supplier Integrity
The Red Flag Group®
▪ About The Red Flag Group®
The Red Flag Group® is business intelligence and technology firm that helps clients make better decisions by selecting better business partners, employees, suppliers and customers.
Presenters
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1 Evolving Supply Chain Integrity Risk
2 Foundation of a Successful Programme
3 Maturing Your Integrity Risk Programme
4 Tactical Programme Tools
5 Q & A
Agenda
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Focus of integrity assessments within the supply chain are evolving
Traditional – looked an awful lot like channel
sales due diligence (ABAC AML risk focused)
Current – Shifting focus on data security/privacy
and CSR concerns
Future – Deeper and ongoing assessments
across the risk spectrum
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Why the change?
Drivers for an ethical supply chain:
Regulation Brand reputationConsumer value
alignment
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Why develop
an integrity
programme?
Business intelligence on your suppliers…
…letting you make better decisions!
Today it is just good business!
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Suppliers can hurt business
Bad press IS bad
press! Even if
absolved…
Apple / Foxconn Worker safety, 2016
Lumber LiquidatorsProduct safety, 2015
UNIQLO (clothing)
Labour rights violations, 2016
CostoCoModern day
slavery lawsuit,
2015
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Poll Question
Environment &
Sustainability
Human Rights Issues
A
B
What risk areas are most top of mind for your current supply chain?
Antitrust & Corruption
Data Privacy &
Cyber Security
C
D
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THINKING STRATEGICALLY
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Supply Chain
Integrity• Change Management
• Key Influencer
• Integrity SME
• Change Promoter
• Systems and Process Owner
• Supply Chain SME
Compliance
Board
Procurement
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Poll Question
Yes
No
A
B
Does your organisation require supply chain partners to agree to a supplier code of conduct?
UnsureC
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Starting points for a successful programme
▪ Partnership between Compliance and Procurement
▪ Establish integrity standards
▪ Develop a supply chain risk profile
▪ Rank identified risks
▪ Segment suppliers by risks
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IMPLEMENTING TACTICALLY
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Allocation of resources by risk tiers
MEDIUM
LOW
HIGH
Budget
People
Time
RES
OU
RC
ES
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Tactical assessment tools
Risk scoring model
Business intelligence (integrity screening, questionnaires, human
researched due diligence reports)
Audits and inspections
Ongoing monitoring
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Supply Chain Integrity Technology
Program
Automation
Data and
Analytics
Artificial
Intelligence
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Please select any topics that you would like us to
provide more information on.
Supplier Onboarding Platform
Reporting Hotline
A
B
Supplier Screening
C
Advisory Services
D
E
Audits and Investigations
Poll Question
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MAKE BETTER
DECISIONS ABOUT
YOUR SUPPLIERS.
It’s just good business.
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Questions?Questions?
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RedConnect Series October 2018:
▪ Copenhagen – 9th of October
▪ Amsterdam – 11th of October
▪ Munich – 22nd of October
▪ London – 25th of October
Reserve your seat today!
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WEBSITE
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WEBINAR SCHEDULE AND
RECORDINGS
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FOLLOW US
Twitter: @redflaggroup
LinkedIn: The Red Flag Group
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