...Cisco Systems, Inc. Supply Chain Risk Management Chuck Munson with María Jesús Sáenz and Elena Revilla Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Operations Specialist: Jodi Kemper Managing Editor: Kristy Hart Senior Project Editor: Betsy Gratner Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2014 by Chuck Munson Published by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact International Sales at international@pearsoned.com. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. ISBN-10: 0-13-375744-7 ISBN-13: 978-0-13-375744-6 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Reprinted from The Supply Chain Management Casebook (ISBN: 9780133367232)...
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...Identifying risk issues and research advancements in supply chain risk management Ou Tang a,c, S. Nurmaya Musa a,b,n a Department of Management and Engineering, Link¨ping University, SE-581 83 Link¨ping, Sweden o o Department of Engineering Design and Manufacture, University of Malaya, 50603 Kuala Lumpur, Malaysia c School of Economics & Management, Tongji University, Shanghai 200092, PR China b a r t i c l e in fo Available online 3 July 2010 Keywords: Supply chain Risk management Citation/co-citation analysis abstract The purpose of this paper is to investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years. Literature survey and citation/ co-citation analysis are used to fulfil the research task. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Meanwhile, citation/co-citation analysis uses Web of Sciences database to disclose SCRM development between 1995 and 2009. Both the approaches show similar trends of rising publications over the past 15 years. This review has piloted us to identify and classify the potential risk associated with different flows, namely material, cash and information flows. Consequently, we identify some research gaps. Even though there is a pressing need and awareness of SCRM from industrial aspect, quantitative models in the field are relatively lacking and information flow risk has received...
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...Nature of the supply chain risk: Physical contamination of product: physical contamination of product can occur because machines have not been set up as per specification causing foreign material may be discharged into the juice. Example, if a capper head is not set up to specification shavings can be discharged into the juice and if this is not observed by QC right away, thousands of cases of juice maybe destroyed leaving customer out of stock. Physical contamination may also occur because of human error both at the supplier’s end and within the manufacturing plant. For example, an employee can add an ingredient which is not declared on a juice label. If that ingredient contain any allergens then the juice cases that were produced with the ingredient by error may need to be destroyed. Too much inventory: Too much inventory is due to inaccurate forecasting. Too much inventory may also occur because La need to continue to keep producing juice to keep it employees employed. La forecast is only about 75% accurate. When the forecast is to high lots of inventory is kept ideal and sometimes causing obsolesce. Also, finished goods are not sold quick enough and since some customers demand juice with no less than 60% of their shelf life, plenty of juice is sent to the food bank causing shortages and fines. Bio terristism: La recognizes that there is real risk of biological contamination along its supply chain. We order numerous numbers of orange tankers, High fructose...
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...Types of Supply Chain Risk 09.05.2016, 15:22 Print REFERENCE THIS 3,061 Words 7 Pages CHAPTERS LINE SPACING Types of Supply Chain Risk Types of Supply Chain Risk Introduction There have been many different definitions of supply chain risk, but it can be broadly defined as "the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective values" (March & Shapira, 1987, p. 1404). However, this definition has since been expanded upon to account for all the different departments and functions that operate within a supply chain. This leads to an overall definition of supply chain risk as "any risks for the information, material and product flows from original supplier to the delivery of the final product for the end user" (Juttner, et al., 2003, p. 202). Simply put, supply chain risk refers to the probability of a risk event occurring the supply line and when the product goes on sale. Furthermore, risk sources are the predominant causes of risk events, which are "the environmental, organisational or supply-chain variables which cannot be predicted with certainty and which impact on the supply chain outcome variables" (Juttner, et al., 2003). Identifying Supply Chain Risk There are a variety different approaches that a company can take in order to identify risk in their supply chain. Steele and Court (1996) proposed a conceptual framework for identifying the potential risk in an organisations supply chain. This...
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...Exercise 6 : Supply Chain Risk Management In the organization I am there are currently some steps in place but unfortunately, they are not necessarily adhered to strictly which makes for inconsistencies in the organization Supply Chain process. Step 1 Business Unit Strategic initiative:The strategic initiative implementation plan by the Business Units would identify what is required to keep the Business Units operationally active without disturbance to current operations. This has to be thorough and in line with that of the whole organization. Each Business Unit has a different Process Mapping process because they deal with different goods/services. If the Strategy is not in line with what Supply envisions, Management will be unlikely to move forward with it without changing it to what they see is best. Step 2 Profile supply base for inventory items:For some Business Units in the organization, the products are categorized into inventory depending on inventory cycles which rely on how heavily each item is used. The needs for items are assessed on a semi-annual basis in order to ensure they are in the proper category. This will ensure proper strategy is taken in order to have minimum thresholds at proper levels. KPIs can be created based on these numbers, for sales, revenues, and quality moving forward. Step 3 Assess vulnerability: Identification of associated risk of supply disruption will be setup by the Business Units. The Supply chain risks have to be...
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...Put Sales at Risk” Why all partners must carry consequences for the associated risk within the Supply Chain Author: Mathijs Cornelis van Itterzon What are the consequences of a tsunami in Japan, with respect to the price of Apple stocks? If we ask a regular person this question, one may answer that it doesn’t have that much influence at all. Mainly because people have never heard of the company ShinEtsu, which is responsible for manufacturing thin silicon wafers for Apples products (Der Spiegel, 2011). What many people do not know is that when this Japanese manufacturer has been overwhelmed by a natural disaster risk of stock-out may appear and may harm other partners within the supply chain. One of the major customers is Foxconn in Taiwan which manufacturers Apple’s iPhone and iPad. Still we rely that Apple controls their supply chain well in order to produce sufficient iPhones for the market. Taiwan’s Foxconn is able to produce the iPhones and iPad due to the efficient and ‘justin-time’ delivery from the Japanese manufacturer. Natural disasters like the tsunami in Japan may disrupt the continuity in the supply chain with all the associated consequences. Risk management and mitigation strategies are suitable solutions, which may prevent a supply chain breakdown because one will get insight in high-risk situations, such as the situation in Japan and hence consider how to reduce the associated consequences (Chopra & Sodhi, Managing Risk to Avoid Supply Chain Breakdown, 2004)...
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...Recession A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession. Recession is a normal (albeit unpleasant) part of the business cycle; however, one-time crisis events can often trigger the onset of a recession. The global recession of 2008-2009 brought a great amount of attention to the risky investment strategies used by many large financial institutions, along with the truly global nature of the financial system. As a result of such a wide-spread global recession, the economies of virtually all the world's developed and developing nations suffered extreme set-backs and numerous government policies were implemented to help prevent a similar future financial crisis. A recession generally lasts from six to 18 months, and interest rates usually fall in during these months to stimulate the economy by offering cheap rates at which to borrow money. The sharp decline in economic activity during the late 2000s, which is generally considered the largest downturn since the Great Depression. The term “Great Recession” applies to both the U.S. recession – officially lasting from December 2007...
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...Supply Chain Risk Management Strategy Research Major：Master of Business Administration Name：Fei Nie Supervisor：Zhiyuan Fang, Assistant Professor ABSTRACT As the Information Technology and all kinds of automation technology applied in the industries, the enterprise efficiency had been developed to a comparable high level, inapplicable to Chinese companies. The marginal effect of manufacturing skill to improve the competitiveness had been demised. People are approaching to the supply side and total supply chain of the life-cycle product but not only the internal of the enterprise. Internationally more and more big companies are outsourcing their business but only keeping the core business. Therefore, Supply Chain Management, the safeguard of their core business, is becoming more and more critical. This paper works over the literatures relating to supply chain risk management strategy and the actual situation of Macau’ s medium-sized companies, and surveys the actual strategy deployment by the suppliers via questionnaires. Moreover, the paper brings about the practical feasible and efficient suggestions to promote the hospitality industry to mitigate the supply chain risk, and provide the supporting and backing for our internal hospitality enterprise strategy decision-making in China. The paper draws the following conclusions: First, to make sure the safety of the supply continuity, the mindset of risk should be established inside...
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...Thinking, viewed 5 September 2012, http://youtu.be/pEIXE9DI9e4.) System thinking is useful to global supply chains because it is an approach to problem solving, by viewing “problems” as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences. System thinking is not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can be best understood in the context of relationships with each other and with other systems, rather than in isolation.() The company that this analysis will focus on is Coca Cola company, in particular it will focus of the challenges they face in globalisation, industry specific challenges, some risk and failure points, system thinking and the product life cycle. The coca cola enterprise is a globalised company with an iconic brand name that is known around the world. It is a global business with “17 manufacturing facilities spread out around the world, it produces 11 million bottles and cans per year and employs over 13,500 employees”.(http://cokecce.com) The risk associated with globalisation can be broken down in four sections. Supply, demand, operational and security risks. (metzgar ) states “Supply risk which is the distribution of outcomes related to adverse events in inbound supply that effect the ability of the focal firm to meet customer demand ( in terms of both quantity and...
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...corporate. Organizations use corporate social responsibility (CSR) to set up activities in order to achieve and respond these expectations. Jamali and Mirshak (2007) state that CSR approach helps to attract global attention and acquire a new resonance in the worldwide economy. However, Frankental (2001) claims “Do CSR is a public relations (PR) invention?” and company focus on promoting itself, getting an edge on its revivals rather than being ethic to protect the environment or maintain human welfare. Therefore, in this essay, author is going to discuss about the different between CSR as well as PR. Moreover, it will apply an example of IKEA to examine the effectiveness of its CSR in supply chain and analyze CSR as a business strategy to maintain the sustainability of business, financial control and risk management. Afterwards, author will highlight the limitations of CSR policy and finally provide some recommendations to improve the CSR strategy for corporates in order to maintain the sustainable resources and increase the brand value as well as profit. Definition of PR According to Clark (2000) points out that public relation (PR) as a communication field from public information to reputation management to relationship management, it is emphasized on the promoting corporate image or two-way communication to gather audience feedback....
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...POMS Abstract Number: 011-0371 Title: Managing Global Food Supply Chain Risks: A Scenario Planning Perspective A. Deep Business School, Loughborough University Loughborough LE11 3TU, UK Email: a.deep@lboro.ac.uk || Phone: +44.1509 223176 S. Dani Business School, Loughborough University Loughborough LE11 3TU, UK Email: s.dani@lboro.ac.uk || Phone: +44.1509228830 POMS 20th Annual Conference Orlando, Florida U.S.A. May 1 to May 4, 2009 Introduction Food is a fundamental requisite for human existence. An agrarian society shows the simplistic form of existence where agriculture forms the core of the society and is the prime means of support and sustenance. That, however, no longer remains the foundation of most of today’s developed economies where food chains are increasingly becoming complex and multi tiered. The chains start with agriculture and ends ultimately, with household consumption. But the numbers of entities between these ends encompass geographical, economic, political and social extremes. This compounded over uncertainty occurring from natural disasters, climate changes, epidemics and terrorist threats place the food supply chain in a particularly vulnerable position. The recent Chinese milk scare which left thousands of Chinese babies ill after consuming melamine tainted milk powder produced by the Chinese Sanlu Group required urgent action by New Zealand, United States and the European Union to issue product warnings to contain the spread of melamine related...
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...1. What was the strategic advantage to Microsoft of outsourcing Xbox production to Flextronics? The strategic advantage to Microsoft of outsourcing Xbox is to manage manufacturing and logistic capabilities to make the Xbox itself and to manage a global supply change. Flextronics also sells computer hardware and the products represent a much smaller part of the company’s overall revenues. When taking into consideration whether to manufacture the Xbox in house or to outsource, the company chose the latter strategy. Microsoft was able to continue to focus on its core business while allowing another company, Flextronics, which has expertise in managing a global supply chain to control production. 2. What were the risks associated with outsourcing to Flextronics? Did Microsoft mitigate these risks? Do you think Microsoft would have been better off making the Xbox itself? The risk associated with outsourcing to Flextronics is the company makes the decision to outsource; it gives up control over the production process. Some of the risks also included a suitability, quality, and so on will become the responsibility of another company. Microsoft decided to outsource Xbox production; the company chose to work with Flextronics, which it had a long history with. Microsoft would not have been better off making the Xbox itself because in the long run the jobs can stimulate the economy and its easier to control a plant when you’re watching it grow. 3. How did Flextronics’ industrial...
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...Management Submission Date: 20th May 2013 Name of Student: Teh Jin Hock Assignment Question: What risks and perils are present in global transportation? Discuss how exporters and importers can manage these risks. Table of Contents 1. Introduction 2. Potential Threats and Risks of Global Transportation 3. Manage the Risks 4. Conclusion 5. Reference Introduction Thanks to globalization, lean processes, and the geographical concentration of production, among other factors, supply chain and transport networks are more efficient than ever before. This increasing sophistication and complexity, however, is accompanied by increasing risk. Major disruptions in the past five years—including the global financial crisis, the Yemen parcel bomb scare, flooding in Thailand, and the Japanese earthquake and tsunami—have illustrated the vulnerabilities of finely tuned, closely interconnected supply chain and transport networks. Although risks have increased, there are concerns about the ability of organizations to address this new risk profile. As the recent , New Models for Addressing Supply Chain and Transport Risk, points out, most enterprises have logistics and transportation risk management protocols that can address localized disruptions. Greater supply chain risks outside the control of individual organizations, however, can have cascading and unintended consequences...
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...Compare and contrast the pre-1995 Lucent supply chain to the 1996-2000 supply chain with respect to the focus and structure of each. Identify what you believe to be the key factors that necessitated the changes that Lucent made. Did the changes make sense from a strategic perspective? In the pre 1995 Lucent’s supply chain, most of the Asian production was manufactured in Oklahoma City. The focus was on USA customers and business from Asia was not significant, therefore there were no manufacturing facilities set up in Asia. Lucent formed joint ventures with telecommunications-related companies across Asia to facilitate market entry into Asian markets. The focus was on the market entry strategy and not manufacturing. These joint ventures performed only final assembly and testing for customers in the countries in which the joint venture is located. The joint ventures had little or no production capabilities. However, for the 96-2000 supply chain, as there was huge growth of communications infrastructures in Asia, the Lucent also had to focus on Asia customers due to the amount of business opportunities. The manufacturing structure was changed such that custom engineering and manufacturing of Asian orders would be done in Taiwan. In addition, the joint ventures also manufacture their own circuit pack and outsourced the production of low volume level circuit packs. The ordering process was also different. In pre-95 supply chain, countries with local joint ventures companies...
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...Resources Management The University of Western Australia Strategic Planning and Strategy Strategic Planning • The process by which a firm’s managers evaluate the future prospects of the firma and decide on appropriate strategies to achieve long-term objectives Strategy • The basic means by which the firm competes., that is, its choice of business or businesses in which to operate and the ways in which it differentiates itself from its competitors 63 How does globalisation, risk, political-legal-ethical and culture affect the value chain that a firm manages and operates to create ‘value’ = strategic planning +strategy = STRATEGIC FIT between ‘inputs’ and ‘outputs’ Porter, M (1985) Competitive Advantage: creating and sustaining superior performance. NY: Free Press The University of Western Australia Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment and Scanning (PEST, PESTEL, Risk) Internal and Competitive Analysis (SWOT) Global Integrative and Entry Strategy Alternatives (Export, JV, Strategic Alliance, CAGE) Strategic Choice, Implementation, Feedback, and Control (Governance) Copyright ©2014 Pearson Education Realize that much of international business is conducted through strategic alliances. Understand the reasons that firms seek international business allies and the benefits they bring. Become familiar with the ways that SMEs can expand through alliances ...
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