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Supply Chain Disruption
           & Resiliency
  David Landsman – Director, Strategic Alliances MFG.com
         Bill Michels – C.P.S.M. & CEO ADR North America
Your Hosts
     • 6x Supply & Demand
       Chain Executive Pro to
       Know
     • Co-Author: Transforming
       Your Supply Chain
     • Senior management
       positions with; SCM
       Corporation, Smith
       Corona Typewriters,
       Durkee Famous Foods,
       Boise Cascade, and
       Campbell Soup Company
     • @sourcingguy on Twitter
       & author of the Sourcing
       Guy blog.

                                  2
Your Hosts
     • 10 yrs experience
       domestic & LCC
       sourcing
     • Led the Tier 1
       Automotive Sourcing
       Practice at First Index
     • Built the Sourcing,
       Engineering & Global
       QA groups at MFG.com
     • @mfgsourcing on
       Twitter & author of the
       Sourcing on the Edge
       blog


                                 3
MFG.com – The Facts
•   MFG.com is the only place
    manufacturers can source
    real-time in a “true”
    marketplace setting                  • “One of the 15
•
•
    Founded in 2000
    Global Company headquartered
                                           companies that
    in Atlanta, with operations in
    Shanghai and Paris                     will change the
•   Marketplace available in 7
    languages, over 50 currencies
                                                world”
                                                   •   -CNNMoney.com
•   Serves over 300 manufacturing
    categories
•   Over 200,000 members in
    50 countries
•   Suppliers pay an annual
    subscription to participate in the
    quoting and collaborative process
    with buyers



                                                                       4
Today’s Program
•   Japan crisis – Global Impact
•   Managing Supply Chain Risks
•   Moving Production Closer to Consumption
•   Where Does Resiliency Begin?
•   KPIs & Assessment
•   Takeaways
•   Questions & Discussion


                                              5
Japan




The earthquake, tsunami, and fallout have substantially
 impacted the global supply chain and will for years to
                        come.
                                                          6
Managing Supply Chain Risks




  Do you know where your risks are?

 The more transparent the supply chain, the better chance
      to avoid or mitigate risks before they happen.

                                                            7
Types of Risk
•   Product tampering      •   Bankruptcy
•   Exchange rates         •   Business interruption
•   Patent infringement    •   Product liability
•   Legal                  •   Prolonged equipment
•   Political                  breakdowns
•   Fire/explosion         •   Natural catastrophes
•   Counterfeit products   •   Environmental
•   Product recall             impairment
•   Credit/financial       •   Regulatory issues
                           •   Security

                                                       8
Moving Production Closer to
      Consumption




   Understanding the shifting economics, sustainability
concerns and the desire to shrink the overall supply chain is
          driving manufacturing back on shore.
                                                                9
Where does resiliency begin?




  Assembling a cross functional team is critical to risk
 mitigation. What are the potential risks? What is the fall
            out? How does recovery happen?
                                                              10
KPIs & Assessment




    Realism is a critical component when assessing
 organizations. Is what you think will happen a realistic
outcome? Have you accounted for the human element?

                                                            11
Takeaways!
• Ensure Your Supply Chain is
  Geographically Diverse
• Take a Risk Management Approach to
  Supply Chain Management
• Develop a Plan to Manage Supply Chain
  Risk & Potential Disruption
• Move Production Closer to Consumption
  (Re-shoring)
• Form a Cross-Functional Risk
  Management Team
• Be Realistic with Drills

                                          12
Questions & Discussion




                         13

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Supply chain panel

  • 1. Supply Chain Disruption & Resiliency David Landsman – Director, Strategic Alliances MFG.com Bill Michels – C.P.S.M. & CEO ADR North America
  • 2. Your Hosts • 6x Supply & Demand Chain Executive Pro to Know • Co-Author: Transforming Your Supply Chain • Senior management positions with; SCM Corporation, Smith Corona Typewriters, Durkee Famous Foods, Boise Cascade, and Campbell Soup Company • @sourcingguy on Twitter & author of the Sourcing Guy blog. 2
  • 3. Your Hosts • 10 yrs experience domestic & LCC sourcing • Led the Tier 1 Automotive Sourcing Practice at First Index • Built the Sourcing, Engineering & Global QA groups at MFG.com • @mfgsourcing on Twitter & author of the Sourcing on the Edge blog 3
  • 4. MFG.com – The Facts • MFG.com is the only place manufacturers can source real-time in a “true” marketplace setting • “One of the 15 • • Founded in 2000 Global Company headquartered companies that in Atlanta, with operations in Shanghai and Paris will change the • Marketplace available in 7 languages, over 50 currencies world” • -CNNMoney.com • Serves over 300 manufacturing categories • Over 200,000 members in 50 countries • Suppliers pay an annual subscription to participate in the quoting and collaborative process with buyers 4
  • 5. Today’s Program • Japan crisis – Global Impact • Managing Supply Chain Risks • Moving Production Closer to Consumption • Where Does Resiliency Begin? • KPIs & Assessment • Takeaways • Questions & Discussion 5
  • 6. Japan The earthquake, tsunami, and fallout have substantially impacted the global supply chain and will for years to come. 6
  • 7. Managing Supply Chain Risks Do you know where your risks are? The more transparent the supply chain, the better chance to avoid or mitigate risks before they happen. 7
  • 8. Types of Risk • Product tampering • Bankruptcy • Exchange rates • Business interruption • Patent infringement • Product liability • Legal • Prolonged equipment • Political breakdowns • Fire/explosion • Natural catastrophes • Counterfeit products • Environmental • Product recall impairment • Credit/financial • Regulatory issues • Security 8
  • 9. Moving Production Closer to Consumption Understanding the shifting economics, sustainability concerns and the desire to shrink the overall supply chain is driving manufacturing back on shore. 9
  • 10. Where does resiliency begin? Assembling a cross functional team is critical to risk mitigation. What are the potential risks? What is the fall out? How does recovery happen? 10
  • 11. KPIs & Assessment Realism is a critical component when assessing organizations. Is what you think will happen a realistic outcome? Have you accounted for the human element? 11
  • 12. Takeaways! • Ensure Your Supply Chain is Geographically Diverse • Take a Risk Management Approach to Supply Chain Management • Develop a Plan to Manage Supply Chain Risk & Potential Disruption • Move Production Closer to Consumption (Re-shoring) • Form a Cross-Functional Risk Management Team • Be Realistic with Drills 12