Your Supply Chain Risk Quotient - AdvisenAdvisen conducted an online survey of supply chain risk management practices for FM Global 380 risk manager participants Structured so questions

Your Supply Chain Risk Quotient

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Moderator

Dave Bradford, EVP and Chief Knowledge Officer, Advisen Ltd.

Supply Chain Risk Management

Advisen Corner Store

•http://corner.advisen.com

•Copy of these slides

•Recording of today’s webinar

•Subscribe to FPN Property Edition

Supply Chain: Reduce Your Vulnerability

•http://www.fmglobal.com/page.aspx?id=03030700

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Today’s Panelists

Bret Ahnell, Senior Vice President and Western Division Manager, FM Global

Bradley Johnston, Chief Administrative Officer, Temple-Inland

Dawn O'Brien, Leadership Partner, Gartner Enterprise Supply Chain Leaders practice

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The Survey

� Advisen conducted an online survey of supply chain risk

management practices for FM Global

� 380 risk manager participants

� Structured so questions relate to a respondent’s stage in developing and implementing an SCRM program.

� No program/not an issue

� Beginning

� Establishing and mature

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Respondent Demographics

16.9%

10.1%

2.1%

10.4%

13.8%

16.6%

5.8%

7.4%

8.9%

1.2%

0.6%

6.1%

Consumer Discretionary

Consumer Staples

Energy

Financials

Health Care

Industrials

Information Technology

Materials

Non Profit

Professional Services

Telecommunication Services

Utilities

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Respondents: SCRM Stage

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Key Findings

� Size (revenue) a factor in average SCRM program maturity and

sophistication.

� More mature SCRM programs differ materially from expectations during

the beginning stages

� Program management

� Collaboration with suppliers

� Use of outside resources

� Challenges identified by respondents include:

� The need to diversify suppliers

� Risks associated with suppliers in developing countries

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Large vs. Smaller Companies

Stage of SCRM Process

Large = more than $1 billion in revenue

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Beginning vs. Establishing & Mature Stage

Companies

What types of supply chain risk coverage do you purchase?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Bus

ines

s in

terr

uptio

nE

xtra

exp

ense

Ser

vice

(util

ity) i

nter

rupt

ion

Logi

stic

s ext

ra c

ostG

oods

in tr

ansi

tC

ustom

er c

redi

t ris

k

Pol

itica

l ris

k

Beginning

Establishing & Mature

How would you assess your organization's ability to collaborate

with your suppliers on SCRM issues?

Beginning vs. Establishing & Mature Stage

Companies

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Who is involved in overseeing the SCRM process?

Beginning vs. Establishing & Mature Stage

Companies

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Establishing and Mature Stage Companies

To what extent does your supply chain/procurement function consider

supply chain risk when selecting and managing supply chain

participants?

Challenges

� Diversification of suppliers

� Suppliers consolidating in some sectors

� Suppliers in developing countries

� Quality control

� Political risks

� Employment issues

� Financial condition of suppliers

Today’s Panelists

Bret Ahnell, Senior Vice President and Western Division Manager, FM Global

Bradley Johnston, Chief Administrative Officer, Temple-Inland

Dawn O'Brien, Leadership Partner, Gartner Enterprise Supply Chain Leaders practice

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Supply Chain Risk Management

Advisen Corner Store

•http://corner.advisen.com

•Copy of these slides

•Recording of today’s webinar

•Subscribe to FPN Property Edition

Supply Chain: Reduce Your Vulnerability

•http://www.fmglobal.com/page.aspx?id=03030700

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