john murphy - global head of procurement, oxford university press
TRANSCRIPT
SUPPLY CHAIN RISK MANAGEMENT
John Murphy
And Procurement’s role in it…….
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Memories
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NBSK $380 - $940
Fuel Crisis 00’ 05’ 07’
Y2K $412bn
Financial Crisis 07’ – 08’
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Definition
“Supply chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity"
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What we expect to manage…
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Traditional risk factors
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Assurance of supplyQualitySupplier financial riskInnovationJITLeanExtended LogisticsOutsourcing
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The new variables
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Brand & Reputational damage Anti Bribery & Corruption Pandemics Intellectual Property Modern Slavery Revenue Damage Geopolitics Brexit………….. Unknown, unknowns
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What’s changed ?
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“Yeah I get it, but its all about the cost, right ?”
Lack of agility through supplier consolidation
“Lets focus on our core”
“How can we drive scale”
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And yet ?
22/11/16
56% - felt unable to conduct a cost benefit analysis of risk of incident amongst suppliers
70% - ask suppliers for business continuity plans ( 30% don’t )
41% - Do not monitor, don’t know or have not considered recovery strategies after contract awardSource – Supply Management
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Are you serious ?
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Investment Training Inclusion
Or Alternatively !
