Presentation on risk management prepared for the Institute of Supply Management Conference in May 2016. Developed by Lora Cecere, Founder of Supply Chain Insights.

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CAN YOU AFFORD
THE RISK?
May 16, 2016

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Disclaimer: I am a Skeptic

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A Social Scientist

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A Fortune-teller of Sorts….

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I Write for the Supply Chain Leader

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Delivering Open Content To The Market

7. Current State

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Descriptors

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Current State

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Business Pain
10

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9 out of 10 Supply Chains are Stuck

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Since 2000, 52 percent of the companies in the Fortune
500 have either gone bankrupt, been acquired, ceased
to exist, or dropped out of the Fortune 500.
Activist campaigns against companies with a market
cap greater than $10 billion has more than doubled
since 2010. Activists won, partially won or settled 73%
of proxy fights in 2014, up from 55% in 2010.

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Dow Chemical Company Performance

14. Understanding Supply Chain
Organizations

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Current Organizational Design

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Talent Risk

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Centers of Excellence: Focus
Little
Emphasis on
Supplier
Development

18. Risk Management

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Risk Definition

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Risk Drivers

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Impact on Financial Reporting

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Disruptions

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Shifts in Ocean Cargo

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Characteristics of Top Performers
Most Mature:
• Higher # of
Disruptions
• Focus of
Leadership Team
• Supplier
Monitoring

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Current State

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Supplier Visibility

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Seeing Beyond the Firewall

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B2B Connectivity

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Corporate Social Responsibility

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• We can outsource our supply chain,
but we cannot outsource risk. We must
own it.
• Issues abound:
• Activism abounds.
• Supplier viability. We have not
owned the network.
• B2B visibility is an issue. We have
made very little progress in
visibility in the last decade.
• Middle-management talent a
growing risk.
• Ports and transportation
infrastructure delays will grow.

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#SCIWEBINAR

32. 2 0 5 5 E . C e n t e n n i a l C i r c l e
T e m p e , AZ 8 5 2 8 4
Lora Cecere
Founder Supply Chain Insights
Lora.Cecere@supplychaininsights.com
617-816-9137
Blog: Supplychainshaman.com
Community: Beetfusion.com
THANK YOU