Supply Chain Risk Management 2015 Summary Charts

Post on 18-Aug-2015

193 views 1 download

Tags:

Transcript of Supply Chain Risk Management 2015 Summary Charts

Supply Chain Insights LLC Copyright © 2015, p. 1

Supply Chain Risk Management Study

Summary ChartsJuly 2015

Supply Chain Insights LLC Copyright © 2015, p. 2

Agenda

Study Overview

Risk Overview

Risk Drivers and Disruptions

Risk Management Performance

Supply Chain Insights LLC Copyright © 2015, p. 3

Study Overview

Supply Chain Insights LLC Copyright © 2015, p. 4

Respondents Primarily Work for Manufacturers; Average Company Size Is $5.6 Billion in Revenue

and 13K Employees

Supply Chain Insights LLC Copyright © 2015, p. 5

Nearly Half Work in a Discrete Industry

Supply Chain Insights LLC Copyright © 2015, p. 6

Respondents Are Primarily in the US/Canada and Are Split Between Those in Finance vs. Supply Chain

Supply Chain Insights LLC Copyright © 2015, p. 7

Most Report That the Supply Chain Leader Reportsto the President or a C-Level Executive

Supply Chain Insights LLC Copyright © 2015, p. 8

Agenda

Study Overview

Risk Overview

Risk Drivers and Disruptions

Risk Management Performance

Supply Chain Insights LLC Copyright © 2015, p. 9

Summary of Supply Chain Risk Management

Supply Chain Insights LLC Copyright © 2015, p. 10

Risk Management Is a Relatively Low Source of Business Pain for Respondents

Supply Chain Insights LLC Copyright © 2015, p. 11

Talent Is Among Top Pain Across Roles;Risk Management Is Equally Low Across Roles

Supply Chain Insights LLC Copyright © 2015, p. 12

Talent Is Among Top Pain Across Roles;Risk Management Is Equally Low Across Industries

Supply Chain Insights LLC Copyright © 2015, p. 13

Definition Given to Respondents

Supply Chain Insights LLC Copyright © 2015, p. 14

Respondents Were Required to Be at Least SomewhatFamiliar with Supply Chain Risk Management

Supply Chain Insights LLC Copyright © 2015, p. 15

Those in Finance Are Less Familiar with Supply ChainRisk Management Than Others

Supply Chain Insights LLC Copyright © 2015, p. 16

Over Half Report Risk Management Is Embedded inOther Processes

Supply Chain Insights LLC Copyright © 2015, p. 17

Over Half Report Risk Management Is Embedded inOther Processes

Supply Chain Insights LLC Copyright © 2015, p. 18

Most Consider Risk Management an ImportantPart of Company’s Supply Chain Strategy

Supply Chain Insights LLC Copyright © 2015, p. 19

Those in Supply Chain Are More Likely Than Othersto Consider Supply Chain Risk Management Important

Supply Chain Insights LLC Copyright © 2015, p. 20

Over Half Driven to Risk Management becauseof Right Thing to Do and/or Leadership Focus

Supply Chain Insights LLC Copyright © 2015, p. 21

Top Reasons for Risk Management ImportanceAre Consistent Across Core Roles

Supply Chain Insights LLC Copyright © 2015, p. 22

Two in Five Report the Head of the Supply Chain IsResponsible for Supply Chain Risk Management

Supply Chain Insights LLC Copyright © 2015, p. 23

Top Supply Chain Challenge Today:Cautious

Supply Chain Insights LLC Copyright © 2015, p. 24

Top Supply Chain Desired Descriptors for Next Year:Controlled & Working Well

Supply Chain Insights LLC Copyright © 2015, p. 25

Greatest Desired Improvements:Modern, Fast & Agile

Supply Chain Insights LLC Copyright © 2015, p. 26

Those in Supply Chain Are More Likely Than Finance toDescribe Supply Chain as Working Well

Supply Chain Insights LLC Copyright © 2015, p. 27

Those in Supply Chain Are More Likely Than Finance to Desire a Supply Chain That Is Aligned, Proactive,

Global and Working Well

Supply Chain Insights LLC Copyright © 2015, p. 28

Agenda

Study Overview

Risk Overview

Risk Drivers and Disruptions

Risk Management Performance

Supply Chain Insights LLC Copyright © 2015, p. 29

Supply Side and External Risks Are Most CommonIssues Addressed by Risk Management

Supply Chain Insights LLC Copyright © 2015, p. 30

Those in Supply Chain Are More Likely Than Others to Report That Risk Management Addresses External Risks

Supply Chain Insights LLC Copyright © 2015, p. 31

Supply Side Risks Are Most CommonIssues Addressed by Risk Management Across Industries

Supply Chain Insights LLC Copyright © 2015, p. 32

Top Three Drivers of Supply Chain Risk TODAY:Product Quality, Supply Viability, Demand Volatility

Supply Chain Insights LLC Copyright © 2015, p. 33

Product Quality Is Among Top Three Risk Drivers Across Roles

Supply Chain Insights LLC Copyright © 2015, p. 34

Product Quality Is Among the Top Three Risk Drivers Across Industry Types

Supply Chain Insights LLC Copyright © 2015, p. 35

Top Categories for Most Common Risk Drivers:Internal and Partners

Supply Chain Insights LLC Copyright © 2015, p. 36

Partner-Related Drivers Expected to Decline Over Time;Consumer and Political Drivers Expected to Increase

Supply Chain Insights LLC Copyright © 2015, p. 37

Globalization Is Among Top Expected Risk in FIVE YEARSAcross Roles

Supply Chain Insights LLC Copyright © 2015, p. 38

Today’s Top Risk Driver Is Product Quality;In Five Years, Expect it to Be Globalization

Supply Chain Insights LLC Copyright © 2015, p. 39

Drivers Most Expected to Increase: Computer Security, Globalization, Regulatory Compliance,

and Operations Complexity

Supply Chain Insights LLC Copyright © 2015, p. 40

Top Areas of Increased Risk vs. 5 Years Ago:Regulatory Compliance and Operations Complexity

Supply Chain Insights LLC Copyright © 2015, p. 41

Top Areas of Expected Increased Risk in 5 Years:Regulatory Compliance and Operations Complexity

Supply Chain Insights LLC Copyright © 2015, p. 42

Top Areas of Increased Risk in 5 Years Vs. 5 Years Ago:Operations Complexity and Consumer Power

Supply Chain Insights LLC Copyright © 2015, p. 43

Areas of Increasing Supply Chain Risk:Operations Complexity, Regulatory Compliance and

Consumer Power

Supply Chain Insights LLC Copyright © 2015, p. 44

70% Had Any Disruptions in 2014, but Only 38% Included Them in Financial Reporting

Supply Chain Insights LLC Copyright © 2015, p. 45

Supplier Issues and Natural Events WereMost Impactful to Supply Chains in Past Five Years

Supply Chain Insights LLC Copyright © 2015, p. 46

Top Two Supply Chain Disruptions in 5 Years:2015’s West Coast Slowdown and 2012’s Hurricane Sandy

Supply Chain Insights LLC Copyright © 2015, p. 47

2015’s West Coast Slowdown Is Among Top Two Events Across Industries

Supply Chain Insights LLC Copyright © 2015, p. 48

Top Two Supply Chain Disruptions in 5 Years:2015’s West Coast Slowdown and 2012’s Hurricane Sandy

Supply Chain Insights LLC Copyright © 2015, p. 49

For Those in the Process Industries, the West CoastSlowdown and Hurricane Sandy Had the Most Impact

Supply Chain Insights LLC Copyright © 2015, p. 50

For Those in the Discrete Industries, the Japan Tsunami, West Coast Slowdown and Hurricane Sandy

Had the Most Impact

Supply Chain Insights LLC Copyright © 2015, p. 51

For Those in the Retail/Other Industries, the West CoastSlowdown and Hurricane Sandy Had the Most Impact

Supply Chain Insights LLC Copyright © 2015, p. 52

Agenda

Study Overview

Risk Overview

Risk Drivers and Disruptions

Risk Management Performance

Supply Chain Insights LLC Copyright © 2015, p. 53

About Half Report Their Company Is Performing Well on Supply Chain Risk Management

Supply Chain Insights LLC Copyright © 2015, p. 54

No Difference in Perceived Risk ManagementPerformance by Role

Supply Chain Insights LLC Copyright © 2015, p. 55

Profile of Those High vs. Low Performing onSupply Chain Risk Management

Supply Chain Insights LLC Copyright © 2015, p. 56

While 80% Report Risk Management Is Important, Only Half Report Good Performance

Supply Chain Insights LLC Copyright © 2015, p. 57

Over Two-Thirds Claim Company’s Risk Management Is Better Than 5 Years Ago

Supply Chain Insights LLC Copyright © 2015, p. 58

Those in Supply Chain Are More Likely Than Othersto Think Supply Chain Risk Management Has Improved

Supply Chain Insights LLC Copyright © 2015, p. 59

Why Changes in Risk Management vs. Five Years Ago(Open-Ended)

Supply Chain Insights LLC Copyright © 2015, p. 60

Top Three Risks Are Also Top 3 Prepared:Product Quality, Supply Viability, and Demand Volatility

Supply Chain Insights LLC Copyright © 2015, p. 61

Drivers Less Prepared for Compared to Risk:Operations Complexity and Economic Uncertainty

Supply Chain Insights LLC Copyright © 2015, p. 62

Demand Volatility is Top Driver of Risk Today, but Companies Are Most Prepared for Product Quality Issues

Supply Chain Insights LLC Copyright © 2015, p. 63

Those in Supply Chain Feel Better Prepared for ProductQuality and Outsourcing Issues Compared to Finance

Supply Chain Insights LLC Copyright © 2015, p. 64

Less Than Half Have Visibility of Their ExtendedNetwork During Supply Chain Disruptions

Supply Chain Insights LLC Copyright © 2015, p. 65

88% Monitor the Financial Status of 1st Tier Suppliers vs. 79% for Extended Tier Suppliers

Supply Chain Insights LLC Copyright © 2015, p. 66

Most Important Risk Management Techniques:Inventory Buffers, Supply Monitoring, Business

Continuity Plans, and Supplier/Customer Conversations

Supply Chain Insights LLC Copyright © 2015, p. 67

Overall Back-up Plans Are Most Important Type of Risk Management Technique

Supply Chain Insights LLC Copyright © 2015, p. 68

Inventory Buffers Are Among Top 3 Important TechniquesAcross Roles

Supply Chain Insights LLC Copyright © 2015, p. 69

Expected New Risk Management Techniques(Open-Ended)