Stephanie Buscher and Angel Poyato Ayuso Agenda Introduction Methodology Data AnalysisResults Recommendations Supply chain risks named in top 10 risks by World Economic ID: 562280
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Slide1
Factors Influencing Supply Chain Risk Data Collection
Stephanie Buscher and Angel Poyato AyusoSlide2
Agenda
Introduction
Methodology
Data Analysis/Results
RecommendationsSlide3
Supply
chain
risks
named in top 10 risks by World Economic ForumJapan 2011 Earthquake715 industries affected and $210B lost salesLightning Struck a New MexicoPhilips microchip plant Nokia vs. Ericsson Market ShareThailand 2004 Tsunami, Iceland 2010 volcano eruptions, etc.
Supply Chain Disruptions
http://r1.cygnuspub.com/files/cygnus/image/SDCE/2014/JUN/640x360/roi-chart2_11519926.jpgSlide4
Perception on Supply Chain Risks
EXTERNAL RISKS
INTERNAL RISKSSlide5
Increasing
dependency
on
sub-tier suppliers:GlobalizationLean and JIT adoptionWidespread outsourcingInformation about sub-tier suppliers:39% of supply disruptions occurring at indirect suppliers75% of companies only monitor their direct tier 1 suppliersOrigin of 2 out of 5 supply chain disruptions is unknown Role of Tier 2 (Indirect) Suppliers http://www.zetes.co.za/~/media/images/south-africa/new/solution-logos/zetessupplychainoverviewiconslres.jpgSlide6
Agenda
Introduction
Methodology
Data Analysis/Results
RecommendationsSlide7
Assessing
risk
:Slide8
Information
Points
Part 1
Part 2
Part 3
Tier 2 Name/ Description
Tier 2 Supplier Address
Tier 2 Supplier Factory City(
ies
)
Factory Country(ies)
% of Component Sourced From Tier 2 Supplier
Days of Inventory on Hand
Recovery Time if Tier 2 Supplier Lost Tenure of Time Working With Tier 2 Supplier
Information Requested of
SuppliersSlide9
Product
portfolio
+8,000
products
95% of
production outsourced 90 locations worldwide2013 Supply Chain Leadership Award Conversations with Industry LeadersSlide10
Component Description
Vendor
Was this supplier contacted (Yes/No)
If no, why?
If yes, did they agree to speak/did not agree to speak.
Why? / ResultComponent14Supplier 1
Component5
Supplier 2
Data from Procurement
Understand Procurement Rationale for Vendor Selection
Why chose one supplier and not another?
Understand
Supplier Rationale for Participating/Not ParticipatingSlide11
Interviews with Tier 1 SuppliersSlide12
Information Sharing
Relative Cost
Measuring
RelationshipsSlide13
Agenda
Introduction
Methodology
Data Analysis/Results
RecommendationsSlide14
Results of Contacting Suppliers Slide15
Procurement’s Selection RationaleSlide16
Supplier’s Reason for Not Speaking With
UsSlide17
Information
S1
S2
S3
S4
S5S6Name/Description
Supplier Factory City(ies)
Factory Country(
Ies
)
% of Component
From
Supplier
Days of Inventory on Hand
Recovery Time if Supplier Lost
Tenure
Working
With Supplier
Supplier Willingness to ProvideSlide18
Rationale Behind Hesitancies
Desire
to maintain integrity/confidentiality of their supplier
relationships
Industries
regulated by exchanges did not reveal the lower level suppliers Desire to maintain freedom of sourcing Concern customer will source directly from their suppliers Concern will see their cost structure and increase price pressure Variability of information (Days of Supply / Vendor Composition)Slide19
Trust
Expectation of
Continuity
Value Added
Information Sharing
Relative CostSatisfactionCommunication / FeedbackSupplier 1
Medium
Medium
Low
Low
Low
High
Low
Supplier 2
Low
High
High
Medium
Low
Medium
High
Supplier 3
Medium
Medium
Medium
Low
Low
Medium
Medium
Supplier 4HighHighHighHighHighHigh
High
Supplier 5
Medium
High
Medium
High
Medium
High
Medium
Supplier 6
Medium
High
High
Medium
Medium
High
Medium
Relationship Quality Measure ResultsSlide20
External Factors
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https://m1.behance.net/rendition/modules/1126768/disp/1046961246038324.jpgSlide21
Internal Factors: Corporate Buy-In
For Employees
Need incentives
Must serve as messengers to suppliers
For Suppliers
Need legitimacy Experience from multiple anglesSlide22
Agenda
Introduction
Methodology
Data Analysis/Results
RecommendationsSlide23
Recommendations
Start
conversations early
and o
ften
Align employee incentives with campaignIncorporate supply chain resiliency in corporate strategy Ensure suppliers hear about initiatives from multiple sourcesBuild in-depth data collection platformMake company synonymous with supply chain risk managementSlide24
Questions?
Thank you for your timeSlide25
Relationship Quality Measures Associated Questions
Trust
Do you modify the [focal company]'s forecast?
Do you feel you are a valued member of [focal company]'s supply network?
Would you describe your relationship with [focal company] to be open?
Expectation of Continuity / CommitmentDo you have a long term contract with [focal company]?Can you count on the orders for [focal company] with regular frequency? How large is [focal company] in terms of your business?Do you make visits to [focal company]'s sites or facilities?
Does [focal company] make visits to your sites or facilities?
Value-Add
Does your company and [focal company] work together to develop products or services?Does your company offer VMI services to [focal company] or able to offer them?
Do you offer any value-add offerings to [focal company]? Have they accepted?
Have you done any specific
product
development with [focal company]? Slide26
Relationship Quality Measures Associated Questions
Information Sharing
Do you share significant information related to cost with [focal company]?
Are there significant information flows between your company and [focal company]?
Does
[focal company] have insight into your suppliers?Do you have insight into proprietary information of [focal company]?Relative CostHow do your prices compare to those in the market? (Below average, average, we are a premium product)How are prices determined in your company? Have you recently changed costs with [focal company]? Upwards or downwards?
Satisfaction
How effective would you gauge your relationship with [focal company] to be?
Do you see your business staying the same or growing during the next 5 years?
Has [focal company] responded to any concerns you’ve had?
Communication / Feedback
Do you receive quarterly performance updates from [focal company]?
How
do you communicate to or receive feedback from [focal company]?
If you picked up the phone, could you reach your contact at [focal company] quickly?