More Related Content Similar to How Can You Drive Opportunity If You Cannot Manage Risk? (20) More from Lora Cecere (20) How Can You Drive Opportunity If You Cannot Manage Risk?2. Supply Chain Insights LLC Copyright © 2018, p. 2
Agenda
Study Overview
Summary
Supply Chain Overview
Risk Overview
Risk Drivers and Disruptions
Risk Management Performance
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Respondents Are Grouped into Users, Vendors, and Others
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Over Half of Users Work in a Process Industry; User Companies
Have an Average of $4.2B in Revenue and 11K Employees
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The Most Common Industries Among Users Are Chemical
and High-Tech and Electronics
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Nearly One-Third of Users Are Directors or Higher and
the Majority Work in a Supply Chain Role
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Respondents Primarily Work in US/Canada,
Western Europe or Asia
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Agenda
Study Overview
Summary
Supply Chain Overview
Risk Overview
Risk Drivers and Disruptions
Risk Management Performance
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Agenda
Study Overview
Summary
Supply Chain Overview
Risk Overview
Risk Drivers and Disruptions
Risk Management Performance
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Only 18% of Users Consider Risk Management a Top Five
Business Pain for Doing Their Job
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While Users Consider Their Supply Chain to Be Controlled,
It Is Also Has Room for Improvement, Cautious, and Traditional
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In Five Years, Users Expect Their Supply Chain to Be Aligned,
Agile, Proactive, and Controlled
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In Five Years, Users Expect the Most Growth in Terms of
Supply Chain Alignment, Proactivity, and Agility
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Users Rate Their Supply Chain Higher Than Do Vendors, Especially
on Being Controlled, Working Well, Aligned, Agile, and Fast
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Vendors Are More Likely Than Users to Describe Their Supply
Chains in Negative Terms, Especially Reactive, Fixed, and
Functional Silos
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Both Users and Vendors Believe Users’ Supply Chains Will
Be Aligned and Not Very Risk-Taking in Five Years
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Nearly Half of Vendors Think the Supply Chain Leader Should
Report to the COO, vs. a Reported 15% Who Actually Do
(According to Users)
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Agenda
Study Overview
Summary
Supply Chain Overview
Risk Overview
Risk Drivers and Disruptions
Risk Management Performance
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Vendors Claim to Be More Familiar with Supply Chain Risk
Management Than Users Claim
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While Users Report Risk Management Is Embedded in Other
Processes, Vendors Are More Likely to Believe That Users Are Just
Getting Started
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Users and Vendors Agree That Risk Management
Is Important to Supply Chain Strategy
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Overall, Respondents Report That Risk Management Is Important
Due to a Major Disruption for the Company or a Supplier
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For Users, Risk Management Is Primarily Important Due to
Being the Right Thing to Do and Leadership Focus
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Users Are More Likely Than Vendors to Report Risk Management Is
Important Due to Leadership and Being the Right Thing to Do
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Supply Side Risks Are Reported to Be the Primary Issue
Addressed by Risk Management
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Users Are More Likely Than Vendors to Report That Risk
Management Addresses External Risk
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While 41% of Users Say Supply Chain Risk Management
Responsibility Falls to the Head of the Supply Chain, Vendors Are
Less Likely to Agree on Where Responsibility Should Fall
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Agenda
Study Overview
Summary
Supply Chain Overview
Risk Overview
Risk Drivers and Disruptions
Risk Management Performance
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Overall, Respondents Believe the Top Three Supply Chain
Risk Drivers Are Visibility, Complexity, and Demand Volatility
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Users Are More Likely Than Vendors to Believe Regulatory
Compliance and Demand Volatility Are Top Risk Drivers
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Overall, Respondents Believe Increasing End Consumer Power
and Increasing Complexity Will Be Top Risk Drivers in Five Years
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Users Are More Likely Than Vendors to Expect Risk with
Regulatory Compliance and Product Quality Issues
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Overall, Lack of Visibility Is Top Risk in Past and Future,
but Not in the Future
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For Users, Increased Complexity of Operations Is Top Risk in
Past, Present, and Future
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Overall, Respondents Report Lack of Visibility, Computer Security,
and Increased Complexity to Have Increased as Risk Drivers vs.
Five Years Ago
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Overall, Respondents Expect Increased End-Consumer Power,
Geopolitics, Economic Uncertainty, Energy Scarcity, and Water
Scarcity to Increase as Risk Drivers in Five Years
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Overall, Respondents Expect the Greatest Increase in Risk
from Increased End-Consumer Power
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On Average, Users Report Experiencing 3.5 Supply Chain
Disruptions Last Year
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According to Users, 41% of Their Supply Chain Disruptions
Last Year Were Included in Financial Reporting
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Respondents Report That the Top Three Events to Impact
Supply Chains in the Past Five Years Include Cyber Attacks,
the West Coast Port Slow Down, and Hurricane Harvey
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Vendors Are More Likely Than Users to Think Cyber Attacks
and the West Coast Port Slow Down Are Top Events
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Agenda
Study Overview
Summary
Supply Chain Overview
Risk Overview
Risk Drivers and Disruptions
Risk Management Performance
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Users Rate Their Supply Chain Risk Management Higher
Than That of Other Companies
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Risk Management Performance Is 32 Percentage Points
Lower Than Importance Among Users
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Users Rate Themselves Higher on Performing Better on
Managing Risk Than Vendors Rate Users
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Users Report They Are Most Prepared to Handle Product
Quality Issues
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Vendors Think Users SHOULD Be Most Prepared to Handle
Lack of Visibility, Product Quality, and Increased Complexity
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While 41% of Users Report Lack of Visibility Is Top Three Risk,
Only 21% Report It Is Among Top Three That
They Are Prepared to Handle
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Two-Thirds of Users Report They Have Visibility of First Tier
Suppliers During a Supply Chain Disruption
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62% of Users Report Monitoring Financial Status of First Tier
Suppliers but Only 40% for Extended Tier Suppliers
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Overall, the Three Most Important Supply Chain Risk Management
Techniques Are Business Continuity, What-if Analysis, and
Conversations with Suppliers and Customers
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Users Are More Likely Than Vendors to Believe Inventory
Buffers and Manager Insights / Intuition Are Top Techniques