Supply Chain Management (SCM): Risk Management Strategies (PowerPoint PPTX Slide Deck)

DESCRIPTION

This product (Supply Chain Management [SCM]: Risk Management Strategies) is a 25-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

Traditional methods for managing Supply Chain Risk have ceased to be effective with the advent of low probability, high impact events, such as mega disasters, viral epidemics, or major outages. The risk is hard to quantify using traditional methods because of limited or non-existent historical data. This has resulted to companies having calamitous consequences and operational scrambling and failing.

To address this predicament, a Supply Risk Model was developed that focuses on the impact of potential failures at points along the Supply Chain rather than the cause of disruptions. Using this model allows companies to quantify what the financial and operational impact would be if a critical supplier's facility were out of commission.

This presentation provides companies across industries to have a thorough understanding of the Supply Risk Model and the tactical advantage of using the appropriate Risk Management Strategies for a specific supplier. A company's supplier may be of 3 classification, each requiring the appropriate Risk Management Strategies.

1. Low Risk
2. High Risk
3. Hidden Risk

The Supply Risk Model is an effective approach in quantifying Supply Chain exposures and identifying strategies to mitigate impact. Effective and efficient use of the Supply Risks Model and Risk Management Strategies will enable companies to avoid guessing the likelihood of infrequent, high impact events, and instead, focus on evaluating the organization's vulnerability to disruptions.

This deck also includes slide templates for you to use in your own business presentations.

This comprehensive presentation also delves into the critical aspect of Time to Recovery (TTR), a pivotal metric in assessing supply chain resilience. By calculating TTR for each supplier site, organizations can pinpoint vulnerabilities and prioritize risk mitigation efforts. The deck outlines a systematic approach to data collection, ensuring that all pertinent information is captured for effective risk assessment. Additionally, the presentation highlights real-world applications of the Supply Risk Model, demonstrating its effectiveness in evaluating and managing supply chain disruptions. This resource equips executives with actionable insights and strategies to enhance supply chain robustness and continuity.

Source: Best Practices in Supply Chain Management, Risk Management PowerPoint Slides: Supply Chain Management (SCM): Risk Management Strategies PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting

PPT SLIDE DEEP DIVES

Understanding Time to Recovery in Supply Chain Risk

This PPT slide focuses on the concept of Time to Recovery (TTR) within the context of supply chain risk management. TTR is defined as the duration required for a specific node—such as a supplier facility or distribution center—to regain full operational capability following a disruption. This metric is crucial for organizations aiming to enhance their resilience against supply chain interruptions.

The slide outlines 2 primary components: the determination of TTR values and the integration and usage of TTR. Determining TTR values involves analyzing historical data and gathering insights from both buyers and suppliers. This process ensures that the TTR reflects real-world experiences and expectations.

Integration of TTR data is emphasized as it combines information across various tiers of supplier relationships. This includes operational and financial metrics, inventory levels, and demand forecasts. By employing TTR across different durations, organizations can model the impact of disruptions of varying severity. The analysis may involve simulating the removal of a node from the supply network to understand potential consequences.

The slide also highlights the importance of a performance impact index (PI) for each node. This index helps identify nodes that pose higher risks, allowing firms to prioritize their response strategies effectively. The node with the highest PI is assigned a risk exposure index score, which serves as a critical indicator for decision-making.

Overall, the slide presents a structured approach to understanding and managing supply chain disruptions through the lens of TTR, offering valuable insights for organizations looking to bolster their supply chain resilience.

Understanding Supply Risk Model: Key Elements and Benefits

This PPT slide presents an overview of the Supply Risk Model, emphasizing its importance in today's volatile supply chain environment. It outlines the model's characteristics and benefits, highlighting its focus on potential failures along the supply chain rather than the causes of disruptions. This shift in perspective allows organizations to adopt a more proactive risk management approach.

The model quantifies the financial and operational impacts of disruptions, enabling companies to assess the consequences of a critical supplier's facility being out of commission. By providing a clear risk exposure measure, the model simplifies complex risk assessments, making it easier for decision-makers to understand potential vulnerabilities.

Two core elements of the Supply Risk Model are detailed: Time to Recovery (TTR) and Risk Exposure Index. TTR is defined as the duration required for a specific node—such as a supplier facility or distribution center—to regain full functionality after a disruption. This metric is vital for planning and resource allocation, as it directly impacts operational continuity.

The Risk Exposure Index assigns a value to each node, reflecting the potential impact of its disruption. This index aids in prioritizing risk management efforts, allowing organizations to focus on the most critical areas of their supply chain.

The slide concludes by noting that the Supply Risk Model can accommodate various disruption scenarios by analyzing different Time to Recovery durations. This flexibility enhances the model's applicability across diverse supply chain contexts, ultimately supporting more resilient supply networks.

Strategic Supplier Risk Management Approaches

This PPT slide outlines a focused approach to managing supply chain risks associated with high-risk suppliers, particularly those providing strategic components that significantly influence overall manufacturing costs. The content is divided into 2 main sections: Target Segment and Risk Mitigation Strategies.

The Target Segment section identifies suppliers that have a substantial impact on total spend and performance. It highlights that these suppliers often deal in expensive components classified as strategic. Notably, it emphasizes that while these strategic suppliers may only constitute 20% of the total supplier base, they account for a staggering 80% of the organization’s procurement expenditures. This insight underscores the critical nature of these suppliers in the overall supply chain.

In the Risk Mitigation Strategies section, several proactive measures are proposed. Establishing strategic partnerships with suppliers is recommended to analyze and mitigate risk exposure effectively. Additionally, incentivizing suppliers to maintain multiple manufacturing sites across different regions can reduce dependency on a single location, thereby enhancing resilience. The slide also suggests implementing a tracking system to monitor supplier performance, which can provide valuable data for decision-making. Lastly, the development and execution of Business Continuity Plans are advised to ensure that operations can continue smoothly in the face of disruptions.

Overall, this slide serves as a strategic guide for organizations looking to fortify their supply chains against potential risks associated with high-impact suppliers. The insights provided can help decision-makers prioritize their focus on critical suppliers and adopt effective risk management strategies.

Essential Data Points for Risk Assessment Framework

This PPT slide outlines critical components necessary for effective data collection in risk assessment, specifically focusing on the TTR (Time to Recovery) framework. It emphasizes the importance of gathering detailed information across 5 key categories.

Firstly, the "Supplier" section requires specifics such as the site location, part numbers, descriptions, costs, annual volumes, inventory levels, and total annual spend. This foundational data is crucial for understanding the supplier's operational context and financial implications.

Next, the slide addresses "Parts from this site," highlighting the need for detailed part information. This includes not just the part number and description, but also the annual volume and inventory data, which are vital for assessing supply chain robustness.

The "End product" category is also significant, as it links the supplied parts to the final products. Here, the OEM's end products and their profit margins are essential metrics that help gauge the economic impact of potential disruptions.

The "Lead times from supplier site to OEM sites" section focuses on the logistical aspects, stressing the importance of understanding delivery timelines to anticipate delays and plan accordingly.

Finally, the "Time to Recovery (TTR)" section is critical for risk management. It defines TTR in 2 scenarios: when a supplier site is down and when tooling is lost. Understanding these recovery times is essential for developing contingency plans.

Overall, this slide serves as a guide for organizations aiming to enhance their risk assessment processes through comprehensive data collection, ultimately leading to more informed decision-making.