covid - 19 supply chain risk management final v › m1 › en › publications › covid-19 ›...

in a time of crisis Supply Chain Risk Management 2 Questions you should be asking Have you conducted an evaluation of your business continuity plans? Have you performed a risk assessment across all supply chain tiers? Have you performed an operational risk assessment and considered the impact of disruptions on critical business functions? Do you have visibility and access into critical supply chain data to properly assess the potential damage and create immediate plans? Have you conducted scenario planning exercises to understand the operational implications, both financial and non-financial, of various scenarios? Have you set up a temporary inventory recovery and evaluation process? Have you evaluated strategies for alternative sourcing, including the impact of tariffs to cost? 1 3 5 4 6 7 How mature is your risk management approach ? 25% of firms 5% of firms 50% of firms Unstructured risk management without defined structures Ad-hoc 20% of firms Maturity How should you support your business and manage ongoing crisis? Crisis response : Addressing active risks (e.g. COVID-19) leveraging a rapid deployment approach that minimses damage. Example: your supply of intermediate components from a Chinese supplier was just shut down. How do you do damage control ? Crisis mitigation : Anticipating and mitigating future risk (e.g. supplier bankruptcy) before it is realised in an effort to improve supply chain resilience. Example: you understand that a number of your key tier 2 suppliers are facing liquidity issues and may face bankruptcy. How do you mitigate this risk? Supply chain risk management unit : Establishing a sustainable unit within your organisation to proactively manage financial and operational risks. Example: after facing supplier disruptions because of flooding and typhoons in South Asia you have decided to develop a supply chain risk management function. Where do you begin ? Rapid localisation of critical items : Identifying critical supply chains and localising them to ensure supply. Example: you are heavily dependent on imports for a number of products and essential items. How can you develop a localisation plan to minimise this dependency ? Addressing risks in case of crisis with defined structures Reactive Anticipatory risk management by dedicated procurement employees Proactive Involvement of cross-functions along the risk management value chain managed by dedicated supply chain risk management unit Cross-functional 8 Have you activated product redesign / material certification resources? 8 PwC Middle East Start a conversation Dr. Bashar El Jawhari Partner [email protected] Nick Laborie Senior Manager [email protected] Sachin Halbe Director [email protected] Source: Strategy& Analysis

Upload: others

Post on 24-Jun-2020

2 views

Category:

Documents

0 download

Report

Download

Embed Size (px):

TRANSCRIPT

in a time of crisis

Supply Chain Risk Management

Questionsyou should be asking

Have you conducted an evaluation of your business continuity plans?

Have you performed a risk assessment across all supply chain tiers?

Have you performed an operational risk assessment and considered the impact of disruptions on critical business functions?

Do you have visibility and access into critical supply chain data to properly assess the potential damage and create immediate plans?

Have you conducted scenario planning exercises to understand the operational implications, both financial and non-financial, of various scenarios?

Have you set up a temporary inventory recovery and evaluation process?

Have you evaluated strategies for alternative sourcing, including the impact of tariffs to cost?

1 3

54 6

How mature is your risk management approach ?

25%of firms

5%of firms

50%of firms

Unstructured risk management without defined structures

Ad-hoc

20%of firms

Maturity

How should you support your business and manage ongoing crisis?

Crisis response :Addressing active risks (e.g. COVID-19) leveraging a rapid deployment approach that minimses damage.

Example: your supply of intermediate components from a Chinese supplier was just shut down.How do you do damage control ?

Crisis mitigation :Anticipating and mitigating future risk (e.g. supplier bankruptcy) before it is realised in an effort to improve supply chain resilience.

Example: you understand that a number of your key tier 2 suppliers are facing liquidity issues and may face bankruptcy.How do you mitigate this risk?

Supply chain risk management unit : Establishing a sustainable unit within your organisation to proactively manage financial and operational risks.

Example: after facing supplier disruptions because of flooding and typhoons in South Asia you have decided to develop a supply chain risk management function. Where do you begin ?

Rapid localisationof critical items : Identifying critical supply chains and localising them to ensure supply.

Example: you are heavily dependent on imports for a number of products and essential items.How can you develop a localisation plan to minimisethis dependency ?

Addressing risks in case of crisis with defined structures

ReactiveAnticipatory risk management by dedicated procurement employees

Proactive Involvement of cross-functions along the risk management value chain managed by dedicated supply chain risk management unit

Cross-functional

Have you activated product redesign / material certification resources?

PwC Middle East

Start a conversation

Dr. Bashar El [email protected]

Nick LaborieSenior [email protected]

Sachin [email protected]

Source: Strategy& Analysis

COVID-19 Business Survey Analysis · Challenges Answers % Staff shortages / general HR issues 39 35.45% Local supply chain disruptions 32 29.09% International supply chain disruptions