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Supply Chain Risk

Supply Chain Risk. Supply Chain Risk Management. Analyze the risks Probability Impact Manage the risks Prevention ( avoidance ) Mitigation of the effects (impact reduction ) Aligned with strategy Assess vulnerability Vulnerability Matrix ( exercise ?) Value at Risk (VAR).

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Supply Chain Risk

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  1. Supply Chain Risk

  2. Supply Chain Risk Management • Analyze the risks • Probability • Impact • Manage the risks • Prevention (avoidance) • Mitigation of the effects (impact reduction) • Alignedwithstrategy • Assessvulnerability • VulnerabilityMatrix (exercise?) • Value at Risk (VAR)

  3. Risk types in TFC • Supply risks • Hurricane, earthquake, fruit disease, piracy, truck driver strike, price changes, 2nd tier disruption • Analyzeprobabilityanditseffects (risk map) • Actions: Supplierlocation, supplierrelationaffecting TTR (supplierdevelopment, contract duration, dualsourcing), lot sizes, inventory, portfolio changes • Processrisks • Warehouse strikes because of (too) high workload • Actions: more FTEs, increase intake time, labor pool, outsource whse • Inventory getting lost because of warehouse overflow • Actions res: increasewhsesize, decrease lot sizes • Mixing error (recall) • Actions: Lotsize, Quarantineafterproduction, Tracking andTracing • Demandrisks • Research on Vit C health effects • Actions: increase vit C inventory, smal(ler) batches, portfolio changes, forcedrelaunch (+ horizon)

  4. Assessing risks high • Possible actions • Prevention • Mitigation Probability of occurrence low low Impact high

  5. Vulnerability matrix high • Possible actions • Priorities • Trade offs Probability of occurrence low low Value at risk high Source: Krajljic

  6. Assessing your suppliers Leverage Strategic high Strategic importance Routine Bottleneck low low Supply risk high Source: Krajljic

  7. Suppliers assessing you Exploitable Core high Relative value of business Nuisance Development low low Account attractiveness high Source: Kraljic

  8. Strategyinto actionLevels in version 2013

  9. Extensionsin version 2013

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