Presentation Transcript

1. MANAGING OPPORTUNITIES AND THREATS IN SCM

   Assist.Prof.Dr. Lütfi SAKA Okan University, Vocational School, Head of Management and Organization Logistics Program Coordinator Lutfi.saka@okan.edu.tr
2. MANAGING OPPORTUNITIES AND THREATS IN SCM Introduction Data and Information Sharing Recommendations for Government and Business What is Risk? Risk Management Conclusion
3. INTRODUCTION Increasingly globalized operating models and the growing interconnectivity of supply chain and transport networks are leading to evolving risk profiles and new systemic risk management priorities. Risk profiles are changing as businesses’ operating models become more globalized, and supply chain and transport networks become increasingly complex, interconnected and interdependent.
4. Major disruptions in the last five years – including the global financial crisis, terrorist scares, flooding in Thailand and the Japanese earthquake and tsunami – have heightened public discussion on risk preparedness within supply chains and transport networks.
5. the global financial crisis
6. terrorist scares
7. Flooding in Thailand
8. Japanese earthquake and tsunami
9. The interconnected nature of global supply chain and transport networks means modern businesses are often “reliant on thousands of independent suppliers and partners located in many countries”. Consequently, they both affect and are affected by risks at various stages, from the sourcing of raw materials to the destinations of goods and services, and these risks are not always within the confines of the company’s control.
10. Effective identification and management of systemic risk across the end-to-end supply chain requires a high level of collaboration between businesses, professional bodies, governments, regulators, suppliers, customers and even competitors. Carefully managed sharing of information, expertise and priorities can develop collaborative and trusted relationships, which are crucial to pre-disruption preparation and post-disruption rapid response, as well as improve the other four risk management methods prioritized by the expert group.
11. There is considerable enthusiasm for developing greater collaboration between business and government at the global level on supply chain and transport risk, recognizing that the nature of global disruptions means there are too many economic, security and political issuesto take a well structured approach to risk management.
12. Simplifying, internationally harmonizing and implementing effective legislation is a key concern across industry groups. Aligning legislation and regulation with modern industry practices is essential to improved risk management. However, especially countries like Turkey where poorly targeted legislation and regulation also has the potential to unintentionally and unnecessarily exacerbate disruptions to supply chain and transport networks.
13. Conducting risk assessments and cross-company scenario planning will enable policy-makers and industry to proactively identify network vulnerabilities and confer in the design of new legislation and regulation. Further collaboration between regulators and business is then required to address the inevitable challenges associated with the implementation of legislation and regulation, and to optimize intended benefits.
14. However, aligning priorities and agreeing on focus areas will inevitably be a gradual process and will require substantial input from both public and private sector leaders. There are also immediate opportunities for greater understanding and coordination at the industry and/or regional level, as illustrated by initiatives such as the Supply Chain Risk Leadership Council, which comprises manufacturing and services supply chain firms working together to develop and share supply chain risk management best practices.
15. International Supply ChainManagement logistics, Internationallogistics,andSupplyChainManagement
16. It is critical for government and businesses to work together to understand risks to supply chain and transport networks, and develop new solutions and best practices for risk management. Organizations have a great opportunity to increase the resilience of global networks, and key players within the public and private sectors must move collaboratively towards a new model of supply chain risk management.
17. DATA AND INFORMATION SHARING Access to accurate and reliable information can ensure a clearer global picture of supply chain networks’ vulnerabilities and support the harmonizing of back-up plans in the event of a disruption. Identifying reoccurring risks at the industry level can also help businesses and governments focus efforts on increasing network resilience. However, the availability of shared data and information was identified as being ineffectively managed.
18. Supplier Customer Supply-Demand Management Relationship Relationship "Make, Move, Store" Management Management Plant "Buy" "Sell" Plant Warehouse Customers Suppliers Plant ManagingtheMove Side of a Business, byG.JanCaller
19. Improving the two-way flow of information between businesses and government was identified as a particular priority, Two specific actions could be suggested : establishing reliable dashboards for macro-level flows and disruptions through key infrastructure; and increasing the flow of information across end-to-end networks to improve transparency at all tiers of the supply chain.
20. RECOMMENDATIONS FOR GOVERNMENT AND BUSINESS As we mentioned earlier systemic supply chain and transport risk should be more effectively managed through multi stakeholder action andcollaboration. The key actors are the supply chain and transport industry itself, its customers and government.
21. SellingDirectlytoByG.J.caller
22. More explicitly assess supply chain and transport risks as part of procurement, management and governance processes Develop trusted networks of suppliers, customers, competitors and government focused on risk management Improve network risk visibility, through two-way information sharing and collaborative development of standardized risk assessment and quantification tools
23. CollaborationandQuickResponse,by G.J.Caller
24. OPPORTUNITIES IN THREATS From my point of view the biggest opportunity in SCM would be again its threats and risk management. Nowadays, the management's challenges are increasingly formed from a complex network of suppliers that can do threaten the business and the creation of new opportunities for risk management. To understand the supply chain risks which the companies are faced to makes possibility for risk managers to make more power to realize and challenge against unexpected happenings. In the unsecure and unstable terms of competitive environment, recognizing of above mentioned risks cause the adaptation and act as a strategic lever in the organizations competitive process.
25. WHAT IS RISK? Risk and its probability, remarkably returns to the beginning of written human history. Nowadays not only there is too many dangerous situations, but also the development of modern technology has brought about an exact knowledge of probability risk in these risky cases.
26. The new risks which have been relevant with advancement of this trend. The key parameter in this trend is regarded as a fact which improves relating knowledge. At present, we have more information about physics world as to 19th century and more than 20th century. Altogether, mechanization of the most part of daily life has caused human being enter to newer dangerous world.
27. At the same time, the available technology makes us familiar with the instruments which estimate and control probable risks and avoids over all from them in all times. Our understanding about the priority of human being in behavioral psychology and economical sciences help us to recognize the methods in which, people can understand the probable risks and control them in their life. With increasingly modernized life, still the different ways are necessary to divide the role and share of risks between different organizations (Michael, 2003).
28. RISK MANAGEMENT Risk management means recognition, analysis and economical control of risks or probability of risks which can threat properties and economical incomes of companies. On the other hand, risk management is the same system which is planned to order the confronting operations against indetermination and probable deviation (Fathi.et al, 2004).
29. CONCLUSION To conclude I firmly believe that understanding the risk implications of supply chain strategies is an important area. Risk Managers should aim to identify the perceivedperformance/vulnerability trade-offs in supply chain strategies and to support supply chain team by providing appropriate tools to assess the vulnerability of their supply chains.