This presentation gives you information on reducing the risks in your supply chain and some techniques and a framework to follow to reduce or stop the risks from affecting your business completely. Here are some highlights: What is a 'Business continuity Plan' and how does it help you assess, prioritize, and work on reducing risks? The need for transparency into your supply chain. If you do not know who supplies your suppliers, how can you plan ahead for risks? We also discuss TTR (time to recover) and PI (performance impact), as well as showing the relationship between PI and total spent at a supplier's site and looking at creating a critical supplier list. Finally, we break down the options you have for finding and dealing with your supply chain risks. Want to watch the presentation and hear more about it in detail? Click here: https://youtu.be/RADhdH5r444 Visit our website here: https://www.sofeast.com/ Contact us if you need any help: https://www.sofeast.com/contact-us/

1. Seeing The Risks
Throughout Your Supply Chain

2. Do not overlook low-probability risks
Humans have many biases. One of them is to underestimate the
probability of rare events.
Financial models often support that. Example: in 2003, the Japanese
Nuclear Commission set a goal of 1 nuclear incident per million years. It
happened 8 years later!
A global “once in a Century” pandemic was predictable, especially
after SARS. George W. Bush in 2005 and Bill Gates in 2015 said
preventive measures were needed.
And yet… nothing was done in nearly all countries.

3. The Business Continuity Plan
1. Planning: what are the risks?
2. Prioritizing: what are the highest risks?
3. Taking preventive actions: how to address high risks?
 Become less exposed (preventively)
 Have more visibility and monitor the risks (so we can react early)
 Have a reaction plan already in place
 Prepare employees & managers, suppliers, customers…

4. Here is a simplified business continuity plan example with 2 potential
issues shown:

5. These issues then get rated on the 3 dimensions of risk: severity of impact,
likelihood of occurrence, and ability to detect.
(Same 2 issues, same table, moving to the columns on the right.)

6. All this leads to an action plan:

7. The Need For Transparency
To see the risks, you need to have visibility over your supply chain.
“From farm to fork”?
It can be very time consuming.
Some of your partners will certainly resist.
(Do you need full identifiers? “Paint shop A”, “Cable supplier B”…)

8. Illustrating the approach (1)

9. Illustrating the approach (2)

10. Performance impact and total spent at supplier site

11. Generating a critical supplier list
Image/s source: INFORMS: FROM PANDEMIC DISRUPTION TO GLOBAL SUPPLY CHAIN RECOVERY

12. Time for decisions: what are the options?
 Higher inventory? At what locations?
 24/7 monitoring of certain facilities?
 Double-source a component/product
 In different countries?
 Sole-source, but have your key partners set up a strong BCP?
 They double-source components
 They produce in 2 sites, they hold extra inventory…
 Buy insurance
 Digitization of certain processes
 Diversify sales channels
 ...

13. Thanks for joining the presentation!
Any questions?