your supply chain risk quotient - advisenadvisen conducted an online survey of supply chain risk...
TRANSCRIPT
Your Supply Chain Risk Quotient
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Moderator
Dave Bradford, EVP and Chief Knowledge Officer, Advisen Ltd.
Supply Chain Risk Management
Advisen Corner Store
•http://corner.advisen.com
•Copy of these slides
•Recording of today’s webinar
•Subscribe to FPN Property Edition
Supply Chain: Reduce Your Vulnerability
•http://www.fmglobal.com/page.aspx?id=03030700
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Today’s Panelists
Bret Ahnell, Senior Vice President and Western Division Manager, FM Global
Bradley Johnston, Chief Administrative Officer, Temple-Inland
Dawn O'Brien, Leadership Partner, Gartner Enterprise Supply Chain Leaders practice
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The Survey
� Advisen conducted an online survey of supply chain risk
management practices for FM Global
� 380 risk manager participants
� Structured so questions relate to a respondent’s stage in developing and implementing an SCRM program.
� No program/not an issue
� Beginning
� Establishing and mature
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Respondent Demographics
16.9%
10.1%
2.1%
10.4%
13.8%
16.6%
5.8%
7.4%
8.9%
1.2%
0.6%
6.1%
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Non Profit
Professional Services
Telecommunication Services
Utilities
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Respondents: SCRM Stage
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Key Findings
� Size (revenue) a factor in average SCRM program maturity and
sophistication.
� More mature SCRM programs differ materially from expectations during
the beginning stages
� Program management
� Collaboration with suppliers
� Use of outside resources
� Challenges identified by respondents include:
� The need to diversify suppliers
� Risks associated with suppliers in developing countries
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Large vs. Smaller Companies
Stage of SCRM Process
Large = more than $1 billion in revenue
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Beginning vs. Establishing & Mature Stage
Companies
What types of supply chain risk coverage do you purchase?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Bus
ines
s in
terr
uptio
nE
xtra
exp
ense
Ser
vice
(util
ity) i
nter
rupt
ion
Logi
stic
s ext
ra c
ostG
oods
in tr
ansi
tC
ustom
er c
redi
t ris
k
Pol
itica
l ris
k
Beginning
Establishing & Mature
How would you assess your organization's ability to collaborate
with your suppliers on SCRM issues?
Beginning vs. Establishing & Mature Stage
Companies
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Who is involved in overseeing the SCRM process?
Beginning vs. Establishing & Mature Stage
Companies
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Establishing and Mature Stage Companies
To what extent does your supply chain/procurement function consider
supply chain risk when selecting and managing supply chain
participants?
Challenges
� Diversification of suppliers
� Suppliers consolidating in some sectors
� Suppliers in developing countries
� Quality control
� Political risks
� Employment issues
� Financial condition of suppliers
Today’s Panelists
Bret Ahnell, Senior Vice President and Western Division Manager, FM Global
Bradley Johnston, Chief Administrative Officer, Temple-Inland
Dawn O'Brien, Leadership Partner, Gartner Enterprise Supply Chain Leaders practice
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Supply Chain Risk Management
Advisen Corner Store
•http://corner.advisen.com
•Copy of these slides
•Recording of today’s webinar
•Subscribe to FPN Property Edition
Supply Chain: Reduce Your Vulnerability
•http://www.fmglobal.com/page.aspx?id=03030700
16