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Supply Chain Insights LLC Copyright © 2014, p. 1
Supply Chain
Risk Management Study
Summary Charts
April 2014
Supply Chain Insights LLC Copyright © 2014, p. 2
Agenda
 Study Overview
 Risk Overview
 Risk Drivers and Disruptions
 Risk Management Performance
Supply Chain Insights LLC Copyright © 2014, p. 3
Study Overview
Supply Chain Insights LLC Copyright © 2014, p. 4
Respondents Primarily Work for Manufacturers and
Average Revenue is $5 Billion
Supply Chain Insights LLC Copyright © 2014, p. 5
Two-Thirds of Manufacturers Are in a Process Industry,
Especially Consumer Packaged Goods
Supply Chain Insights LLC Copyright © 2014, p. 6
Respondents Primarily Work in a Supply Chain Role
and One-Quarter Are Vice Presidents or Higher
Supply Chain Insights LLC Copyright © 2014, p. 7
Most Report That the Supply Chain Leader Reports
to a C-Level Executive or the President
Supply Chain Insights LLC Copyright © 2014, p. 8
Agenda
 Study Overview
 Risk Overview
 Risk Drivers and Disruptions
 Risk Management Performance
Supply Chain Insights LLC Copyright © 2014, p. 9
Definition Given to Respondents
Supply Chain Insights LLC Copyright © 2014, p. 10
Risk Management Is a Relatively Low Source of
Business Pain for Respondents
Supply Chain Insights LLC Copyright © 2014, p. 11
Over Half Report Risk Management Is Embedded in
Other Processes
Supply Chain Insights LLC Copyright © 2014, p. 12
Most Consider Risk Management an Important
Part of Company’s Supply Chain Strategy
Supply Chain Insights LLC Copyright © 2014, p. 13
Over Half Driven to Risk Management Because
of Major Supply Chain Disruption
Supply Chain Insights LLC Copyright © 2014, p. 14
Two in Five Report the Head of the Supply Chain Is
Responsible for Supply Chain Risk Management
Supply Chain Insights LLC Copyright © 2014, p. 15
Top Supply Chain Descriptive Challenges Today:
Global, Many, Controlled, & Room for Improvement
Supply Chain Insights LLC Copyright © 2014, p. 16
Top Supply Chain Descriptive Challenges NEXT Year:
Proactive, Strategic, Aligned, Controlled & Global
Supply Chain Insights LLC Copyright © 2014, p. 17
Greatest Improvements in Positive Descriptors:
Proactive and Aligned
Supply Chain Insights LLC Copyright © 2014, p. 18
Agenda
 Study Overview
 Risk Overview
 Risk Drivers and Disruptions
 Risk Management Performance
Supply Chain Insights LLC Copyright © 2014, p. 19
Supply Side and External Risks Are Most Common
Issues Addressed by Risk Management
Supply Chain Insights LLC Copyright © 2014, p. 20
Top Three Drivers of Supply Chain Risk TODAY:
Demand Volatility, Supply Chain Visibility,
and Operations Complexity
Supply Chain Insights LLC Copyright © 2014, p. 21
Top Categories for Most Common Risk Drivers:
Partners and Internal Drivers
Supply Chain Insights LLC Copyright © 2014, p. 22
Partner-Related Drivers Expected to Decline Over Time;
Internal and Consumer Drivers Expected to Increase
Supply Chain Insights LLC Copyright © 2014, p. 23
Partner-Related Drivers Expected to Decline Over Time;
Internal and Consumer Drivers Expected to Increase
Supply Chain Insights LLC Copyright © 2014, p. 24
Drivers Most Expected to Increase:
Regulatory Compliance, Operations Complexity,
and Consumer Power
Supply Chain Insights LLC Copyright © 2014, p. 25
Areas of Increasing Supply Chain Risk:
Operations Complexity, Regulatory Compliance and
Consumer Power
Supply Chain Insights LLC Copyright © 2014, p. 26
Demand Volatility Is Only Top 3 Driver in
Past, Present and Future
Supply Chain Insights LLC Copyright © 2014, p. 27
Top Areas of Increased Risk vs. 5 Years Ago:
Regulatory Compliance and Operations Complexity
Supply Chain Insights LLC Copyright © 2014, p. 28
Top Areas of Expected Increase Risk in 5 Years:
Regulatory Compliance and Operations Complexity
Supply Chain Insights LLC Copyright © 2014, p. 29
Top Areas of Increased Risk in 5 Years vs. 5 Years Ago:
Operations Complexity and Consumer Power
Supply Chain Insights LLC Copyright © 2014, p. 30
Top Two Supply Chain Disruptions in 5 Years:
2011’s Tsunami in Japan and 2012’s Hurricane Sandy
Supply Chain Insights LLC Copyright © 2014, p. 31
80% Had Any Disruptions in 2013,
but Only 30% Included Them in Financial Reporting
Supply Chain Insights LLC Copyright © 2014, p. 32
Agenda
 Study Overview
 Risk Overview
 Risk Drivers and Disruptions
 Risk Management Performance
Supply Chain Insights LLC Copyright © 2014, p. 33
About Half Report Their Company Is Performing
Well on Supply Chain Risk Management
Supply Chain Insights LLC Copyright © 2014, p. 34
While 80% Report Risk Management Is Important,
Only Half Report Good Performance
Supply Chain Insights LLC Copyright © 2014, p. 35
Over Two-Thirds Claim Company’s Risk Management
Is Better Than 5 Years Ago
Supply Chain Insights LLC Copyright © 2014, p. 36
Why Changes in Risk Management Vs. Five Years Ago
(Open-Ended)
Supply Chain Insights LLC Copyright © 2014, p. 37
Demand Volatility Is Top Driver of Risk Today, but
Companies Are Most Prepared for Product Quality Issues
Supply Chain Insights LLC Copyright © 2014, p. 38
Drivers Less Prepared for Compared to Risk:
Computer Security and Product Quality
Supply Chain Insights LLC Copyright © 2014, p. 39
Less Than One in Five Has Visibility of Their Extended
Network During Supply Chain Disruptions
Supply Chain Insights LLC Copyright © 2014, p. 40
82% Monitor the Financial Status of 1st Tier Suppliers
vs. 44% for Extended Tier Suppliers
Supply Chain Insights LLC Copyright © 2014, p. 41
Most Important Risk Management Techniques:
Business Continuity Plans, Conversations with Suppliers
and Customers, and Inventory Buffers
Supply Chain Insights LLC Copyright © 2014, p. 42
Overall Back-up Plans Are Most Important Type
of Risk Management Technique
Supply Chain Insights LLC Copyright © 2014, p. 43
Expected New Risk Management Techniques
(Open-Ended)

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Supply Chain Risk Management - Summary Charts - 24 APRIL 2014

  • 1. Supply Chain Insights LLC Copyright © 2014, p. 1 Supply Chain Risk Management Study Summary Charts April 2014
  • 2. Supply Chain Insights LLC Copyright © 2014, p. 2 Agenda  Study Overview  Risk Overview  Risk Drivers and Disruptions  Risk Management Performance
  • 3. Supply Chain Insights LLC Copyright © 2014, p. 3 Study Overview
  • 4. Supply Chain Insights LLC Copyright © 2014, p. 4 Respondents Primarily Work for Manufacturers and Average Revenue is $5 Billion
  • 5. Supply Chain Insights LLC Copyright © 2014, p. 5 Two-Thirds of Manufacturers Are in a Process Industry, Especially Consumer Packaged Goods
  • 6. Supply Chain Insights LLC Copyright © 2014, p. 6 Respondents Primarily Work in a Supply Chain Role and One-Quarter Are Vice Presidents or Higher
  • 7. Supply Chain Insights LLC Copyright © 2014, p. 7 Most Report That the Supply Chain Leader Reports to a C-Level Executive or the President
  • 8. Supply Chain Insights LLC Copyright © 2014, p. 8 Agenda  Study Overview  Risk Overview  Risk Drivers and Disruptions  Risk Management Performance
  • 9. Supply Chain Insights LLC Copyright © 2014, p. 9 Definition Given to Respondents
  • 10. Supply Chain Insights LLC Copyright © 2014, p. 10 Risk Management Is a Relatively Low Source of Business Pain for Respondents
  • 11. Supply Chain Insights LLC Copyright © 2014, p. 11 Over Half Report Risk Management Is Embedded in Other Processes
  • 12. Supply Chain Insights LLC Copyright © 2014, p. 12 Most Consider Risk Management an Important Part of Company’s Supply Chain Strategy
  • 13. Supply Chain Insights LLC Copyright © 2014, p. 13 Over Half Driven to Risk Management Because of Major Supply Chain Disruption
  • 14. Supply Chain Insights LLC Copyright © 2014, p. 14 Two in Five Report the Head of the Supply Chain Is Responsible for Supply Chain Risk Management
  • 15. Supply Chain Insights LLC Copyright © 2014, p. 15 Top Supply Chain Descriptive Challenges Today: Global, Many, Controlled, & Room for Improvement
  • 16. Supply Chain Insights LLC Copyright © 2014, p. 16 Top Supply Chain Descriptive Challenges NEXT Year: Proactive, Strategic, Aligned, Controlled & Global
  • 17. Supply Chain Insights LLC Copyright © 2014, p. 17 Greatest Improvements in Positive Descriptors: Proactive and Aligned
  • 18. Supply Chain Insights LLC Copyright © 2014, p. 18 Agenda  Study Overview  Risk Overview  Risk Drivers and Disruptions  Risk Management Performance
  • 19. Supply Chain Insights LLC Copyright © 2014, p. 19 Supply Side and External Risks Are Most Common Issues Addressed by Risk Management
  • 20. Supply Chain Insights LLC Copyright © 2014, p. 20 Top Three Drivers of Supply Chain Risk TODAY: Demand Volatility, Supply Chain Visibility, and Operations Complexity
  • 21. Supply Chain Insights LLC Copyright © 2014, p. 21 Top Categories for Most Common Risk Drivers: Partners and Internal Drivers
  • 22. Supply Chain Insights LLC Copyright © 2014, p. 22 Partner-Related Drivers Expected to Decline Over Time; Internal and Consumer Drivers Expected to Increase
  • 23. Supply Chain Insights LLC Copyright © 2014, p. 23 Partner-Related Drivers Expected to Decline Over Time; Internal and Consumer Drivers Expected to Increase
  • 24. Supply Chain Insights LLC Copyright © 2014, p. 24 Drivers Most Expected to Increase: Regulatory Compliance, Operations Complexity, and Consumer Power
  • 25. Supply Chain Insights LLC Copyright © 2014, p. 25 Areas of Increasing Supply Chain Risk: Operations Complexity, Regulatory Compliance and Consumer Power
  • 26. Supply Chain Insights LLC Copyright © 2014, p. 26 Demand Volatility Is Only Top 3 Driver in Past, Present and Future
  • 27. Supply Chain Insights LLC Copyright © 2014, p. 27 Top Areas of Increased Risk vs. 5 Years Ago: Regulatory Compliance and Operations Complexity
  • 28. Supply Chain Insights LLC Copyright © 2014, p. 28 Top Areas of Expected Increase Risk in 5 Years: Regulatory Compliance and Operations Complexity
  • 29. Supply Chain Insights LLC Copyright © 2014, p. 29 Top Areas of Increased Risk in 5 Years vs. 5 Years Ago: Operations Complexity and Consumer Power
  • 30. Supply Chain Insights LLC Copyright © 2014, p. 30 Top Two Supply Chain Disruptions in 5 Years: 2011’s Tsunami in Japan and 2012’s Hurricane Sandy
  • 31. Supply Chain Insights LLC Copyright © 2014, p. 31 80% Had Any Disruptions in 2013, but Only 30% Included Them in Financial Reporting
  • 32. Supply Chain Insights LLC Copyright © 2014, p. 32 Agenda  Study Overview  Risk Overview  Risk Drivers and Disruptions  Risk Management Performance
  • 33. Supply Chain Insights LLC Copyright © 2014, p. 33 About Half Report Their Company Is Performing Well on Supply Chain Risk Management
  • 34. Supply Chain Insights LLC Copyright © 2014, p. 34 While 80% Report Risk Management Is Important, Only Half Report Good Performance
  • 35. Supply Chain Insights LLC Copyright © 2014, p. 35 Over Two-Thirds Claim Company’s Risk Management Is Better Than 5 Years Ago
  • 36. Supply Chain Insights LLC Copyright © 2014, p. 36 Why Changes in Risk Management Vs. Five Years Ago (Open-Ended)
  • 37. Supply Chain Insights LLC Copyright © 2014, p. 37 Demand Volatility Is Top Driver of Risk Today, but Companies Are Most Prepared for Product Quality Issues
  • 38. Supply Chain Insights LLC Copyright © 2014, p. 38 Drivers Less Prepared for Compared to Risk: Computer Security and Product Quality
  • 39. Supply Chain Insights LLC Copyright © 2014, p. 39 Less Than One in Five Has Visibility of Their Extended Network During Supply Chain Disruptions
  • 40. Supply Chain Insights LLC Copyright © 2014, p. 40 82% Monitor the Financial Status of 1st Tier Suppliers vs. 44% for Extended Tier Suppliers
  • 41. Supply Chain Insights LLC Copyright © 2014, p. 41 Most Important Risk Management Techniques: Business Continuity Plans, Conversations with Suppliers and Customers, and Inventory Buffers
  • 42. Supply Chain Insights LLC Copyright © 2014, p. 42 Overall Back-up Plans Are Most Important Type of Risk Management Technique
  • 43. Supply Chain Insights LLC Copyright © 2014, p. 43 Expected New Risk Management Techniques (Open-Ended)