Supply Chain Risk Management 2015 Summary Charts

Supply Chain Insights LLC Copyright © 2015, p. 1

Supply Chain Risk Management Study

Summary ChartsJuly 2015


Agenda

Study Overview

Risk Overview

Risk Drivers and Disruptions

Risk Management Performance


Study Overview


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

and 13K Employees


Nearly Half Work in a Discrete Industry


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


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


Agenda

Study Overview

Risk Overview




Summary of Supply Chain Risk Management


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


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


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


Definition Given to Respondents


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


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


Over Half Report Risk Management Is Embedded inOther Processes


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


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


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


Top Reasons for Risk Management ImportanceAre Consistent Across Core Roles


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


Top Supply Chain Challenge Today:Cautious


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


Greatest Desired Improvements:Modern, Fast & Agile


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


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

Global and Working Well


Agenda

Study Overview

Risk Overview




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


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


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


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


Product Quality Is Among Top Three Risk Drivers Across Roles


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


Top Categories for Most Common Risk Drivers:Internal and Partners


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


Globalization Is Among Top Expected Risk in FIVE YEARSAcross Roles


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


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

and Operations Complexity


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


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


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


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

Consumer Power


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


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


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


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


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


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


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

Had the Most Impact


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


Agenda

Study Overview

Risk Overview




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


No Difference in Perceived Risk ManagementPerformance by Role


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


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


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


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


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


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


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


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


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


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


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


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

Continuity Plans, and Supplier/Customer Conversations


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


Inventory Buffers Are Among Top 3 Important TechniquesAcross Roles


Expected New Risk Management Techniques(Open-Ended)

Supply Chain Risk Management 2015 Summary Charts

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