My presentation for SCAP on "supply chain risk management". Short (2 hour) talk held on 2nd March 2012 at Pakistan Institute of Management, Karachi. Yonus

1. Supply Chain
Risk Management
PRESENTED BY
YONUS A. SIDDIQUI
VP E2E SUPPLY CHAIN MANAGEMENT
VP SUPPLY CHAIN ASSOCIATION OF PAKISTAN

2. Causes of Vulnerability
 Competition
 Economy
 Legislation
 Technology
 Consumer Trends
 Globalization

3. Sources of Supply Chain Risk
External Internal
 Supply disruptions  Process related
 Prices, failures, quality, av  Disruptions to value
ailability addition and managerial
processes
 Demand Volatility
 Control & Constraints
 Competition, trends, bullw
 Policies, systems, MOQs, i
hip effect nventories, technology
 Environment  Risk Mngmt Culture
 Politics, legislation, techno  Risk Mitigation
logy, economy  SC Contingency Planning

4. Mapping The Risk Profile
Identify and Prioritize Key Sources of SC Risk
Identify critical infrastructure
Locate vulnerabilities in the critical infrastructure
Model scenarios for the vulnerabilities
Develop responses to the scenarios
Detect potential disruptions as early as possible

5. Managing Supply Chain Risk
Create a risk
management culture
Enhance visibility for
quick response
Collaborate with
suppliers and customers
(Re)design your supply
chain

6. Risk Management Culture
 Responsibility of the Board of directors
 Establish supply chain continuity teams
 Risk considerations built into business decisions
 Internal Audit & Control effectiveness
 Risk ranking and prioritizing
 Continuity planning
 Frequent monitoring
 Reporting and followup by the board

7. Enhance Visibility
 Supply Chain Metrics
 Forecast accuracy
 KPIs, trend analysis,
 Market intelligence
 Early warning and feedback loops
 Internal - employees, processes, compilation & analysis
 External – economic & political
horizons, competition, technology, legislation
 Both Opportunities & Threats
 New windows?
 Change Paths, invoke contingency plans?

8. Collaboration
 With Suppliers
 Supplier selection
 Joint reviews
 Intelligence & information sharing – continuous process
 Effective mechanism for joint proactive action – as a team
 With Customers
 Develop mutual trust and confidence
 Market feedback, joint forecasting
 Mutual information sharing platforms, IT system sharing
 Simultaneous reaction - as a team

9. Redesign Supply Chain
 Fully understand your supply chain
 Mapping
 Risk identification
 Revisit SC design principles
 Efficiency vs resilience
 Fundamental thinking on options
 Supply base strategy
 Sourcing decisions and criteria
 Vendor development

10. Managing Supply Chain Risk
Create a risk
management culture
Enhance visibility for
quick response
Collaborate with
suppliers and customers
(Re)design your supply
chain

11.  http://www.youtube.com/watch?v=QlZ6TyUaYpw