This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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.
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.
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.
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.
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.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
Read Customer Testimonials
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."
– Michael Evans, Managing Director at Newport LLC
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."
– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."
– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor
the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant's toolbox.
"
– Michael Duff, Managing Director at Change Strategy (UK)
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."
– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
"One of the great discoveries that I have made for my business is the Flevy library of training materials.
As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy
It is well worth the money to purchase these presentations. Sure, I have the knowledge and information to make my point. It is another thing to create a presentation that captures what I want to say. Flevy has saved me countless hours of preparation time that is much better spent with implementation that will actually save money for my clients.
"
– Ed Kemmerling, Senior Lean Transformation Expert at PMG
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."
– David Harris, Managing Director at Futures Strategy
Receive our FREE presentation on Operational Excellence
This 50-slide presentation provides a high-level introduction to the 4 Building Blocks of Operational Excellence. Achieving OpEx requires the implementation of a Business Execution System that integrates these 4 building blocks.
Receive our FREE presentation on Operational Excellence
Get Our FREE Product.
This 50-slide presentation provides a high-level introduction to the 4 Building Blocks of Operational Excellence. Achieving OpEx requires the implementation of a Business Execution System that integrates these 4 building blocks.
Click main image to view in full screen.
