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Supply Chain Risk Guest Lecture Analyzes Risks and Strategies

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Jan Husdal
Jan Husdal

Lecture on supply chain risk

BusinessTechnologie
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Supply Chain Risk Guest lecture, LOG 711, 12.11.2008 Jan Husdal  jan.husdal@himolde.no  71214289
Outline ,[object Object],[object Object],[object Object]
Supply chain risk? Loss of goods Insurance? Loss of vehicle Replacement? Delayed delivery Brand reputation? Injured personell Hiring and training? Weather conditions Detour?
Supply Chain Trends >>> Consequences ,[object Object],[object Object],[object Object],[object Object],[object Object],Christopher, M. (2005) Managing risk in the supply chain . In: Christopher, M. (Ed.) Logistics and Supply Chain Management. 3rd ed., Prentice Hall, pp. 231-258.
Supply Chain Risk - Piracy http://www.icc-ccs.org/
Why is supply chain risk important? ,[object Object],[object Object],World Economic Forum (2008) Hyper-optimization and supply chain vulnerability: an invisible global risk? In: Global Risks 2008 – A Global Risk Network Report, REF: 090108, World Economic Forum, Switzerland. http://www.weforum.org/pdf/globalrisk/report2008.pdf
Supply Chain Risk – an example ,[object Object],[object Object],[object Object],[object Object],Norrman and Janson (2004) Ericsson’s proactive supply chain risk management after a serious sub-supplier accident . International Journal of Physical Distribution and Logistics Management, Vol 34, No 5, pp. 434-456
What is risk? ,[object Object],[object Object],[object Object],[object Object],[object Object],Aven, T. (2002) Foundations of Risk Analysis : A Knowledge and Decision-Oriented Perspective, John Wiley & Sons.
The risk concept ,[object Object],[object Object],[object Object],[object Object],[object Object]
Risk analysis ,[object Object],Norman, A. and Lindroth, R. (2004) Categorization of Supply Chain Risk and Risk Management . In: Brindley, C. (Ed.) Supply Chain Risk. Ashgate, pp. 14-27.
Proactive versus Reactive Asbjørnslett, B E and Rausand, M (1997) Assess the vulnerability of your production system . Report NTNU 97018. Norwegian University of Science and Technology NTNU, Department of Production and Quality Engineering, Trondheim, Norway. Tomlin, B. (2006) On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks . Management Science, Vol. 52, No. 5, pp. 639-657 Ritchie, B. and Brindley, C. (2004) Risk Characteristics of the Supply Chain – A Contingency Framework . In: Supply Chain Risk. Ed. Brindley, C. , Ashgate Publishing, pp. 28-42,197-202 Mitigative actions address risk sources. Contingent actions address risk consequences.
Business risks ,[object Object],[object Object],[object Object],De Loach, J. W. (2000) Enterprise-wide Risk Management: Strategies for linking risk and opportunity , Financial Times/Prentice Hall In order to understand suply chain risk it is useful to first look at business risks in general.
Supply Chain Risk Jütner, U., Peck, H. and Christopher, M. (2003) Supply Chain Risk Management: Outlining an Agenda for Future Research. International Journal of Logistics: Research and Applications, Vol. 6 , No. 4, pp. 197-210. Supply Chain Risk can be viewed as a 4-fold construct: Risk sources . Consequences of the risk sources. Risk drivers that turn risks into consequences. Strategies to address the risks.
Supply chain risk sources 1/2 ,[object Object],[object Object],[object Object],[object Object],Peck, H. (2003) Supply Chain Resilience . UK Department of Transport/ Cranfield University, Carnfield, UK. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply chain risk sources 2/2 ,[object Object],[object Object],[object Object],[object Object],Jütner, U., Peck, H. and Christopher, M. (2003) Supply Chain Risk Management: Outlining an Agenda for Future Research. International Journal of Logistics: Research and Applications, Vol. 6 , No. 4, pp. 197-210.
Types of supply chain risk 1/2 ,[object Object],[object Object],[object Object],[object Object],[object Object],Manuj, I. and Mentzer, J. T. (2008) Global Supply Chain Risk Management . Journal of Business Logistics, Vol. 29 , No. 1, pp. 133-155
[object Object],[object Object],[object Object],[object Object],[object Object],Types of supply chain risk 2/2 Manuj, I. and Mentzer, J. T. (2008) Global Supply Chain Risk Management . Journal of Business Logistics, Vol. 29 , No. 1, pp. 133-155
Risk Management Strategies Avoid Transfer Reduce Retain Deloach, J (2000) Enterprise-Wide Risk Management: Strategies for Linking Risk & Opportunity. Financial Times Management/ Prentice Hall. Before we look at strategies for managing supply chain risk, let us look at general strategies for managing risk
Supply Chain Risk Management ,[object Object],1 Paulsson, U. (2004) Supply Chain Risk Management . In : Brindley, C. (ed): Supply Chain Risk. Ashgate Publishing Limited, pp.79-99. 2 Kajüter, P. (2003) Risk Management in Supply Chains . In: Seuring, S Müller, M., Goldbach, M., Schneidewind, U. (eds.) Strategy and Organization in Supply Chains, Physica, Heidelberg, pp. 321-336.
Supply Chain Risk Management Strategies ,[object Object],[object Object],[object Object],[object Object],Manuj, I. and Mentzer, J. T. (2008) Global Supply Chain Risk Management . Journal of Business Logistics, Vol. 29 , No. 1, pp. 133-155
Supply Chain Risk Management Strategies ,[object Object],[object Object],[object Object],Manuj, I. and Mentzer, J. T. (2008) Global Supply Chain Risk Management . Journal of Business Logistics, Vol. 29 , No. 1, pp. 133-155
Supply Chain Disruptions Sheffi, Y. (2005) The Resilient Enterprise - Overcoming Vulnerability for Competitive Advantage , MIT Press Warning? What happens to supply chain performance during an unforeseen event?
[object Object],[object Object],[object Object],The difference between Robustness, Flexibility and Resilience Supply Chain Disruptions
Supply Chain Disruptions 3/3 ,[object Object],[object Object],Mc Manus, S. et al (2007) Resilience Management – A Framework for Assessing and Improving the Resilience of Organisations . Research Report 2007/01, Resilient Organisations, New Zealand. www.resorgs.org.nz Resilient organizations
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supply Chain Design vis-a-vis supply chain disruptions Craighead, C. W., Blackhurst, J., Rungtusanatham, M. J. & Handfield, R. B. (2007) The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities . Decision Sciences, Vol. 38, No. 1, pp. 131-156. Factors (risk drivers) that can aggravate or lessen supply chain disruptions:
Supply Chain Vulnerability 1/2 ,[object Object],[object Object],[object Object]
Supply Chain Vulnerability 2/2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Preparing for Evil , Harvard Business Review, April 2003, pp. 109-115
Supply Chain Risks and Drivers Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
Supply Chain Risks and Drivers Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
Selecting the right strategy Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61. Which strategy works best against which risk?
Tailored Risk Mitigation 1/2 Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
Tailored Risk Mitigation 2/2 Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
Manage supply chain risk 1/2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Christopher, M. (2005) Managing risk in the supply chain . In: Christopher, M. (Ed.) Logistics and Supply Chain Management. 3rd ed., Prentice Hall, pp. 231-258.
Manage supply chain risk 2/2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Christopher, M. (2005) Managing risk in the supply chain . In: Christopher, M. (Ed.) Logistics and Supply Chain Management. 3rd ed., Prentice Hall, pp. 231-258.
Summary ,[object Object],[object Object],[object Object],[object Object]
Thank you

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Supply Chain Risk Guest Lecture Analyzes Risks and Strategies

  • 1. Supply Chain Risk Guest lecture, LOG 711, 12.11.2008 Jan Husdal  jan.husdal@himolde.no  71214289
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  • 3. Supply chain risk? Loss of goods Insurance? Loss of vehicle Replacement? Delayed delivery Brand reputation? Injured personell Hiring and training? Weather conditions Detour?
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  • 5. Supply Chain Risk - Piracy http://www.icc-ccs.org/
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  • 11. Proactive versus Reactive Asbjørnslett, B E and Rausand, M (1997) Assess the vulnerability of your production system . Report NTNU 97018. Norwegian University of Science and Technology NTNU, Department of Production and Quality Engineering, Trondheim, Norway. Tomlin, B. (2006) On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks . Management Science, Vol. 52, No. 5, pp. 639-657 Ritchie, B. and Brindley, C. (2004) Risk Characteristics of the Supply Chain – A Contingency Framework . In: Supply Chain Risk. Ed. Brindley, C. , Ashgate Publishing, pp. 28-42,197-202 Mitigative actions address risk sources. Contingent actions address risk consequences.
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  • 13. Supply Chain Risk Jütner, U., Peck, H. and Christopher, M. (2003) Supply Chain Risk Management: Outlining an Agenda for Future Research. International Journal of Logistics: Research and Applications, Vol. 6 , No. 4, pp. 197-210. Supply Chain Risk can be viewed as a 4-fold construct: Risk sources . Consequences of the risk sources. Risk drivers that turn risks into consequences. Strategies to address the risks.
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  • 18. Risk Management Strategies Avoid Transfer Reduce Retain Deloach, J (2000) Enterprise-Wide Risk Management: Strategies for Linking Risk & Opportunity. Financial Times Management/ Prentice Hall. Before we look at strategies for managing supply chain risk, let us look at general strategies for managing risk
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  • 22. Supply Chain Disruptions Sheffi, Y. (2005) The Resilient Enterprise - Overcoming Vulnerability for Competitive Advantage , MIT Press Warning? What happens to supply chain performance during an unforeseen event?
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  • 28. Supply Chain Risks and Drivers Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
  • 29. Supply Chain Risks and Drivers Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
  • 30. Selecting the right strategy Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61. Which strategy works best against which risk?
  • 31. Tailored Risk Mitigation 1/2 Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
  • 32. Tailored Risk Mitigation 2/2 Chopra, S. and Sodhi, M. (2004) Managing Risk To Avoid Supply Chain Breakdown. MIT Sloan Management Review, Vol. 46 , No. 1, pp. 53-61.
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