Proactive Supply Chain Risk Management (PSCRM)

Course Overview

According to research done by Accenture, supply chain disruptions have been found to cut the share price of impacted companies by an average of 7%! Risk management within supply chains is one of the most significant challenges facing every organization since all organizations are usually members of at least one or more supply chains.

As the world undergoes fast growth, rapid economic development but also supply chain barriers following the pandemic, the Supply Chain Management (SCM) function faces significant risks such as lack of financial resources, currency risks, long lead times and delays, quality risks, and security risks. In view of these, it is no longer sufficient to merely react to Supply Chain disruptions. Instead, organizations need to adopt a proactive approach towards managing these risks in order to reap competitive advantage through their Supply Chains.

This 5 day PSCRM Course will allow delegates to understand and minimize the risk factors present throughout the entire supply chain – from the initial supplier to the ultimate customer based on key factoids, case study application and best-practice tools used in industry.

Delegates will adopt proven strategies to analyse and mitigate end-to-end supply chain risks to captu mitigate end-to-end supply chain risks to capture value, reduce vulnerability and ensure continuity for 2022 & beyond!

Learning Outcomes:

  1. Compare and differentiate five key risk groups
  2. Develop a Risk Contingency Framework
  3. Manage risk in supplier networks
  4. Engage in both Supplier Relationship Management (SRM) and Customer Relationship Management (CRM)
  5. Employ Early Supplier Involvement and best Inventory practices to reduce risk

Benefits of attending

 

  1. Assess and position Supply Chain risk issues using an end-to-end perspective from the initial supplier through to the ultimate end customer
  2. Leverage on the latest ICT developments to digitise your supply chain for improved information flow and collaborations, including how to make your supply chain more customer-centric
  3. Negotiate with suppliers using the Supply Chain Risk Continuum to mitigate negative impacts of operational disturbance, tactical disruption and strategic uncertainty
  4. Examine a risk analysis framework for identifying and managing risks relating to imports, which is also applicable to local sourcingComply with major international project management standards
  5. Develop and evaluate your supply base with the Transaction Cost-Based Framework (TCF) and the Supplier Risk Profile
  6. Understand and manage the financial ramifications of risk including currency fluctuations, payment terms and supplier collusion
  7. Implement Business Continuity Management (BCM) to deal with the trade-off s between cost, quality, lean practices and supply chain risk
  8. Build strong competencies in Supplier Relationship Management (SRM) to reduce risk through strategic vendor development and sourcing strategies
  9. Perform effective budgeting with Total Cost of Ownership (TCO) models to minimize risk
  10. Apply best practices in Inventory Management to address risk factors such as long lead time and variability of supply and demand
Level of the course: Medium to high level application

Who should attend?

    Directors Directors, Heads and Managers, Officers & other Senior Executives from:
  • Supply Chain
  • Procurement
  • Purchasing
  • Sourcing
  • Logistics
  • Inventory Management
  • Risk Management
  • Contracts
  • Warehousing
  • Finance
  • Sales & Marketing

Training Methods

Based on 30(+) years of experience, the presenter gives you a blend of academic concepts such as his work at the University of North Texas in Logistics and Missouri State University as a teacher with his working as a practicioner for Fortune 100 corporations.

This course will be a blend of key concepts, group exercises and case studies with audience participation.

Patrick has also coined the term and utilizes the concept of “Edutainment” where he blends light humor with key educational points to reinforce learnings. Additionally, accompanying this course will be detailed and robust supplemental materials that will allow you to refer back to the key points long after the programs ends so that you can take concept to reality.

Course Outline

Day 1

Module 1: Purchasing Structure and Roles

  • Discuss program purpose, objectives and why best practices in Risk Management should n be important to the participants
  • Solicit participant objectives
  • Icebreaker: What are five key challenges that your firm faces in Risk Management? /li>
  • Review three key developments related to ICT-Information and Communication Technology
    1. Supply Chain
    2. Supply Chain Management
    3. Uncertainty vs. Risk
    4. Risk Determination
    5. Risk Management and
    6. Corporate Stakeholders

Module 2: Categorization of Supply of Supply Chain Risk and Risk Management

    Discuss the three dimensions of Risk Management
  1. Dimension 1: The “Supply Chain” unit of analysis including examples of activities
    2. EXERCISE: Develop a Framework for Assessing and Positioning Supply Chain Risk Issues from the ultimate customer back to the initial supplier
  2. Dimension 2: The type of risk/uncertainty including application of “business risk” and compare and contrast the five core risk groups:
    • Strategic
    • Financial
    • Operational
    • Commercial and
    • Technical

    EXERCISE: Develop a Risk Map/Matrix comparing Probabilities of risk vs. Business impact.

  3. Dimension 3: The stages of the Risk Management Process including:
    • Risk Analysis and Assessment,
    • Risk Management and
    • BCM – Business Continuity Management, including the Supply Chain Risk Management Framework which categorizes various management actions

Day 2

Module 3: The Risk Contingency Framework

    1. the search for competitive advantage
    2. technological advancements and
    3. global competitive pressures
      4. EXERCISE: Develop the Supply Chain Risk Continuum listing operational disturbance, tactical disruption and strategic uncertainty and relate this to commercial negotiations with a supplier of goods and services.
  • Define a Supplier Network and compare this to a Virtual Enterprise
  • Review the Supply Chain Risk Contingency Framework with the key dimensions of contextual characteristics, structural/ process characteristics, decision support, human characteristics and metrics.

Module 4: Risk Management in Supplier Relationships and Networks

  • Define a Supplier Network and compare this to a: Virtual Enterprise
  • Develop a TCF: Transaction Cost-Based Framework for Network Risk Analysis, including comparison of Strategic Network Risk Analysis, including a comparison of Strategic (complimentary competencies generated by suppliers) vs. Non-Strategic (generic competencies)
  • Discuss risk in supplier networks based on a study of 863 companies
  • Compare the risks of single sourcing vs. multiple sourcing – including disruption of supply, price escalation, inventory costs, technology, quality and supplier opportunism
  • Review the Risk-Based Assessment for Supplier Relationships based on investments by both the buyer and the seller
  • Discuss Risk Management in Supplier Networks including:
  • Discuss Risk Management in Supplier Networks including: identify cation, assessment, risk reduction and risk monitoring

Day 3

Module 5: Maximizing Supplier Relationship Management (SRM) & The Risk Focus Toward Customers

  • Develop a Supplier Risk Profile
  • Review the three Strategic Sourcing Factors
  • Practice Supply Base Rationalization (Optimization)
  • Managing Supplier Relationships: from win-lose to win-win
    • CASE STUDY: CAPS Study on types of supplier relationships
  • Determine the impact of ICTs – Information and Communication Technologies on supply chains including both views of the customer having access to information reducing risk as well as their lack of trust in virtual relationships
  • Incorporate “relationship marketing” with risk and Supply Chain Management
  • Develop Customer Centricity – which is a non-linear process of adding value and multi-channel approaches to the customer
    • EXERCISE: Develop an Amorphous Supply Chain Model using an example of the procurement of travel

Module 6: The Financial Ramifications of Risk & Minimizing Risk Through Good Budgeting and Total Cost Modeling

  • Compare and contrast the risk factors of payment terms, supplier collusion and currency fluctuations including specific contract language to address based on a “window band”
  • Review the pros and cons of supplier financing to address funding gaps
  • Review the steps in good budgeting and the key types of budgets
  • Compare & contrast cost types, cost behaviors, cost decisions & cost drivers
  • Define & review examples of both Should Cost & Target Cost
      • Define TCO-Total Cost Of Ownership with a focus on the three key areas of:
    • - Pre-Acquisition
    • - Main Acquisition
    • - Post-Acquisition

EXERCISE: Review key TCO models – Dutch Shell Oil & Texas Instruments

EXERCISE: A Model for Petroleum Supply Chain Risk Analysis Based On a Study of a Multinational Oil Enterprise (MNOE): The participants will look at the risk associated with identifying and quantifying supply chain risk in the petroleum industry including a framework to explore and quantify risk of disruptions in a multinational oil firm supply chain based on data collected from supply chain managers of MNOEs.

The management of risk in this industry is an imperative because the lack of it can encourage a perception of uncertainty of oil and gas supplies in the global energy market which in turn can result in an increase in global crude oil and gas prices leading to a global economic crisis. The supply chain risk management techniques presented in this case study are also applicable to other non-petroleum industries.

Day 4

Module 7: Utilizing ESI – Early Supplier Involvement as a Tool - Reducing Supply Chain Risk & Applying Good Inventory Management Principles to Minimize Risk

  • Define ESI and compare and contrast the Five Levels of Involvement
  • Compare and contrast the benefits vs. drawbacks of ESI
  • Review the research of how ESI at an aerospace supplier helps manage supply risk.
    • EXERCISE: Develop an ESI Process Model
  • Understand the three main inventory objectives and how they often conflict with each other
  • Review the three types of inventory, which are raw materials, work-in-process and finished goods and how much to keep at each level
  • Review the functions of inventory to address such factors as the variability of supply and demand
  • Calculate the real cost of carrying inventory relegated to the three categories of capital, storage and risk
  • Develop a Best-In-Class inventory management system

Module 8: A Risk Analysis Framework for Imported Supplies (with applicability to domestic supplies) Note: These concepts will be helpful in addressing the key point that reliance on imports exposes companies to higher risk of delays due to poor port infrastructure resulting in port congestion and slow clearing of goods.

  • Compare and contrast the three stages of Risk Analysis and Management related to imports
      • Stage 1: Preparing for Analysis – four step process of
    • preliminary screening
    • problem formulation
    • selecting methods of analysis, and
    • data collection
  • Stage 2: Risk Analysis – including defining the elements of ships, goods, packaging, vessel traffic, activities, infrastructure, weather conditions, exposed population and activities ashore, risk receptors (human, marine, property and financial), risk characterization
  • Stage 3: Conclusions – combining the framework structure with the analysis techniques structure

Day 5

Module 9: Evaluating and Ensuring Provider Quality – Both Supplier and Carrier

  • Discuss the risk ramifications from lack of product and component quality – the Toyota k Motors example
  • Learn how to minimize risk by developing a Supplier Certification Program
    • EXERCISE: Review an award winning supplier benchmarking tool which explores key areas of quality levels, customer service, management support, delivery and pricing and rate against best-in-class standards
  • Minimize risk of lack of carrier quality through strategic carrier partnerships based on 12 key activities
    • CASE STUDY: CAPS Study on roll of carriers in customer/supplier alliances
  • Review the role of insurance in minimizing risk in both imports and exports
    • EXERCISE: Discuss the role of insurance coverage

Module 10: Effective Practices and Tools for Ensuring Supply Chain Continuity

  • Utilize Lean practices in Supply Chain Management including the “leaning of the supply chain” leading to “system fragility”
      • Implement BCP – Business Continuity Planning including the four steps of:
    • creating system awareness
    • preventing supply discontinuity,
    • remediating supply interruptions and
    • managing knowledge
    • Material Supply Quality Audit Section Related to Supplier’s Disaster Recovery
    • Material Supply Quality Assessment Scoring Method
    • Purchasing Risk Register
    • Risk Action Example
    • Risk Assessment Process Example
    • The Probability and Impact Dimensions of Risk
    • Financial Appraisal Example
    • Media Review Example
  • Wrap Up
  • Course Quiz with discussion

Optional Certification

This Course has been analyzed by the Missouri State University and it had the proper content and quality to get the university’s quality seal, that means that you’re going to get a top of the line course.

Delegates have the option of receiving the PSCRM Certificate issued by Missouri State University. Certificates cost US$150 per delegate

Trainers

Your Course Director: Patrick S. Woods

Patrick S. Woods: For the past 30 years, Patrick S. Woods has had the phenomenal opportunity to work and train with over 300 companies in the U.S., Saudi Arabia, Asia, Netherlands, Middle East, Africa (Uganda, Ghana, Nigeria and South Africa), India, Central America, Former Soviet Union and Latin America in various facets of SCM, including training, certifications and consulting solutions.

Patrick has a wealth of experience in materials management and supply chain consulting solutions for high volume, fast paced organizations such as Emerson Electric, EDS, Clark Equipment, Intergraph, Perot Systems and NEC. He was also an adjunct professor at the University of North Texas specializing in logistics, transportation and marketing.

He now offers various SCM trainings in collaboration with Missouri State University, USA.

 

Certifications and publications: Patrick has the following credentials:

  • CPIM - Certified in Production & Inventory Mangement (through ASCM)
  • CPSM - Certified Professional Supply Manager (through ISM)
  • CPSD - Certified in Supplier Diversity (through ISM)
  • C.PM. - Certified Purchasing Manger (through ISM)

PUBLISHED WORKS

    Listed below are leading edge topics that Patrick has authored and that have been published on the national level for supply chain and materials management professionals:
  • Replacement Sourcing: The Solution To Stagnant Suppliers.
  • Have You Kicked The Tires Yet? Concepts Of The Supplier Approval Process.
  • Let’s Get Married: The Customer/Supplier Certification/Partnering Relationship.
  • The Supplier Quality Seminar: Strengthening Your Partnership In Only Two Days!
  • The Supplier Benchmark Audit, The Precursor To Supplier Approval.
  • Put It In Writing! The Contractual Approach To Price Changes
  • There’s Leverage In Them Thar Hills! Developing Successful Leveraging Programs.
  • Purchasing At All Costs? Understanding Your Supplier’s Cost Structure.
  • Got You Covered! The 21st Century Approach To Supplier Agreements.
  • Have You Hugged Your Supplier Today? The Benefits As A Preferred Customer.
  • Adding It Up: Performing Effective Supplier Price And Cost Analysis.
  • What Do You Do When Your Supplier Gets Bought Out?
Upcoming Courses

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