the various factors that expose a global supply chain to risk. also known as the vulnerability of global supply chains to risks. case study's from KFC, YAHOO, APPLE, INTEL, NIKE companies to learn how this affected them.
4. Global Supply chain : distribution of goods and services
through out a transnational company’s global network to
maximize profit and minimize waste. It involves
information, people , processes and resources involved
in the production, handling and distribution of ,materials
and finished products or providing a service to a customer.
Risk is the uncertainty that a loss may occur or not. It
implies future uncertainty about deviation from expected
earnings or out come.
5. suppliers
Parties in global supply chain
producers distributor
Provides the
raw material
needed by
the company
Major source
of providing
raw materials
Purchase
product from
manufacturer
s and sell
them to
customers.
Logistics
The main
company and
organization
purposes to
transform raw
materials to
finished
products
Planning,
implementation,
control of
forward and
reverse flow of
goods and
services and
information
between origin
and
consumption
customers
9. CASES
KFC no chicken saga
.
Reduction of the supplier base
Apple out sourcing
Nike
Out sourcing
Inter related networks
Yahoo > identity theft.
google
10. Failure to identify exposures.
Main
suppliers
Logistics Distributor
Distributors
• Suppliers
• retailers
• Customers
• Sales agents
Logistics
• Air
• Marine
• Car fleet
• Transport
companies
• Train
Factory
• Factory
• Subsidiaries
• Branches
• Ware house
Main suppliers
• Raw materials
• Supplements
• Supplier of
supplier
• Suppliers
Final
consumer
Final
customers
• Shops
• Stores
• Supermarkets
• Malls
• customers
Factory
11. Lack of information of finished goods
distributor
Discounts
Gifts
Customers
Feed back of customers
complaints.
New needs
prices
supplier
Lead time
Tastes and preferences.
producer
Market trends
supplier
Prices
14. Increasingly interrelated networks.
hackers - 11%
Data threats- 20%
viruses -9%
Soft wares - 60%
Complexity
Analysis
Presence of high levels of technology
Hackers
Data threats
Viruses
Soft wares
15. The type of cyber-attack that occurred was identity
theft.
16. Reduction of the supplier base
01
02
03
04
Failure from a single source .
Heavy
responsibility
Focus on single source.
Disruptions cause complete
failure.
Case
Kentucky Fried Chicken
17.
18. Redundancy
Long chains promote redundancy
80
%
Suppliers and retailers in a supply
chain are always redundant
Many customers
High fleet to supply
Government involvement
Low policies
Low standards
Low company involvement
Supervision
19. Focus on efficiency rather than effectiveness
30% 50%
10% 10%
What can I do.
What must I do.
Quantity production vs. quality production
Beat deadlines vs. meet taste
Transportation not delivery
Competitor vs. customer
20. Just in time (JIT)
No space to recollect
quality
Complaints are not
attended to in time
Repetitive manufacturing
functions
Decrease costs
Few suppliers
Inventory management.
Enough inventory to meet
immediate production
needs
Accurately forecast demand
21.
22. Focused factories and centralized distribution
Miss calculation of
demand and supply
Over running of
machines.
Excessive production
.
Fraud
Timely production.
24. Long lead time (the bullwhip effect)
Chains involve cross country suppliers,
information about demand and supply takes
days, weeks or even months to be
communicated across the supply chain. This
causes demand elasticity to be amplified causing
one to move further away from the customer.
Causes Vulnerability
Bullwhip effect
• Delay to receive
news.
• Long Lead time.
• Supplier reluctance
.
• Trends in demand
• Information delay
25. Outsourcing of vulnerable locations
Drop in quality
Failure to meet
recommendations
End of production
Halt in business
Communication
Feed back
Transportation
Loss of customers
loss of sales
Failure to distribute
.
26.
27. Trend to out sourcing
US.
California
China
Taiwan
South Korea
Japan
US
china.
World wide
product
Ireland
Design
manufacturing
Spare parts Testing
assembling Final product
Brooks
Kraft
California
28. Global supply chain vulnerabilities
The continuous globalization ,growth of
companies and increasing competition are the
main catalysts for heavy expansion and the
interconnectedness of Global supply chains.
This creates many loopholes in the supply
chain that may be under looked provoking
vulnerability in the supply chain
Summary
