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Supplier Reliability Track

Supplier Reliability Track. January 29-30, 2008 Review with the Supply Chain Risk Leadership Council. Recent Survey Conducted by AMR. http://www.scdigest.com/assets/newsviews/07-12-13-2.php?cid=1385. Agenda. Business interruption insurance (Tim Astley) Quick review

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Supplier Reliability Track

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  1. Supplier Reliability Track January 29-30, 2008 Review with the Supply Chain Risk Leadership Council

  2. Recent Survey Conducted by AMR http://www.scdigest.com/assets/newsviews/07-12-13-2.php?cid=1385

  3. Agenda • Business interruption insurance (Tim Astley) • Quick review • Discussion….company insights • Where do we go from here

  4. Contributors

  5. Track Deliverables • Risk matrix as framework • Identify best-in-class work for key work process gaps • Develop the next level key element assessment for the identified capabilities (with scoring capability)

  6. Track Scope • Supplier-related risk…inbound materials and services to our company

  7. Risk Matrix- Analysis Structure • As framework, team developed a risk matrix… 5 = demonstrated good results, experienced 4 = system is ready/tested, people are trained 3 = plan in place 2 = initial consideration given 1 = not in place0 Enter Risk Importance in the aqua-shaded cells (scale = 3, 2, 1) i.e. which risk are you most concerned about? Enter a 0 (low linkage), 1 (medium linkage) or 2 (high linkage) for each of the empty white cells..

  8. Risk Matrix

  9. Survey Summary • 12 out of 17 capabilities have high capability score from at least one company • Top 3risks • Supply chain complexity, supplier capability, recovery capability • 7 key capabilities have strong linkage to top 3 risk • Supplier business contingency plan, Internal material contingency plan, Sustainability/regulatory, Strategic material planning/RCCP/material at risk , Supply network capability, Supplier Business Interruption Risk Insurance, Risk analysis • No one has high capability score on one item • “Supplier Business Interruption Risk Insurance”

  10. Guidance on Use of Risk Matrix • SCRLC-level -create common framework to facilitate alignment -identify benchmarks/best-in-class -prioritize capability development • Company level -use risk matrix as an assessment tool -identify areas for improvement from the risk matrix

  11. Proposed Next Steps • Individual companies do a supplier risk assessment • Assess “energy” to work on quantification model • Anything else?

  12. Early Thinking on Risk Quantification

  13. Early Thinking on Risk Quantification

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