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UT Knoxville BUAD 331 - BA 331 Chapter 10

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Slide 1Boeing 757 Global Supply ChainSlide 3Lightning Strikes…Impact of Supply Chain DisruptionSlide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Types of SC RiskSlide 18Risk ProfilingManaging/Mitigating RiskSC SecuritySlide 22Slide 23Organized Theft Case StudyOrganized Theft Case StudyOrganized Theft Case StudyOrganized Theft Case StudyOrganized Theft Case StudyOrganized TheftSupply Chain Security – Best PracticeBusiness Administration 331Supply Chain ManagementChapters 10Dr. John E. BellAssociate Professor of Supply Chain Management 343 Stokely Management [email protected] 757 Global Supply Chain2What percent of U.S. firms do not have a supply chain risk management strategy?3Discussion QuestionClose to 50% !Lightning Strikes…4Source: Economist Intelligence Unit 2009Impact of Supply Chain Disruption5https://www.youtube.com/watch?v=uDv8XF9VI4cTypes of SC Risk17For Ford, the earthquake in Japan in March 2011 represented which kind(s) of risk?A. Supply C. DemandB. Process D. Control18Discussion Question1. How vulnerable is the business to disruptions in supply?2. How volatile is demand?3. How resilient are our processes?4. How likely are disturbances and distortions to be caused by our own internal control systems5. Where across the supply chain are we vulnerable to external forces?Supply chain risk profile = Probability of Disruption * ImpactRisk ProfilingManaging/Mitigating Risk•Mitigate through Redundancy–Inventory and capacity–Multiple facilities/suppliers–Pooled demand•Manage through Resilience–Postponement–Lean processes – speed and reliability–Improve visibility–Leverage supplier relationships–Control complexity and variability20Principal security threats to the global supply chain:SMUGGLING CARGO THEFTTERRORISMSC SecurityFreightwatch InternationalSome information courtesy of:Strictly Confidential22Cargo Theft Global HotspotsEUROPEMEXICOBRAZILMALAYSIASOMALIA23'Land Pirates' Target Europe's Truck Drivers 8:43am UK, Thursday May 14, 2009 Alex Rossi, Europe correspondent Lorry drivers on European roads face the same dangers of hijack as ships off the coast of Somalia, a new report by the EU's police agency suggests. Organised crime groups see truckers as "easy pickings", said Europol.The cargoes being driven across the continent are often valuable, easy to sell on and not protected.Attacks against haulage firms in the EU are now costing the industry billions of pounds every year.Truckers are said to be most at risk in eastern European destinations like Romania, Hungary and Poland.A recent survey by the International Road Transport Union shows one in six truck drivers has been attacked in the past five years - and one in five of them has been targeted more than once. Road-related cargo crime threatens the principle of free movement of goods across Europe.Almost half of the attacks took place in truck parking areas, with the motive in most being to steal the vehicle and its goods.Europol is now warning drivers across the EU to be more vigilant, saying the criminal gangs - known by truckers as "land pirates" - are well organised. The crews often gather intelligence to track the most profitable cargoes - sometimes trailing a truck for up to 200 miles.Often they will mark the vehicle or break a small hole in a rear light, making them easier to shadow."Road-related cargo crime threatens the principle of free movement of goods across Europe," said Europol director Rob Wainwright.He also warned national police forces: "Close co-operation and joint efforts are necessary, otherwise we will not be able to match criminals who are both innovative and cruel in their actions and behaviour.“ Europol says certain cargoes are more at risk than others. There is a rise, for instance, in thieves targeting lorries carrying nickel and copper. Items like alcohol, cigarettes, computers, brand clothing and prescription drugs are also high on the criminals' list.http://news.sky.com/skynews/Home/World-News/Lorry-Drivers-In-Europe-Face-Same-Hijack-Dangers-As-Ships-Off-Somalia-Coast-Europol-Report-Says/Article/200905215281280?f=rss24English vehicle collects HVG in Ireland Organized Theft Case StudyEnglish vehicle collects HVG in IrelandAt a truck stop in Northern France the driver and load are hi-jacked Organized Theft Case StudyEnglish vehicle collects HVG in IrelandAt a truck stop in Northern France the driver and load are hi-jacked20 hrs later English driver found abandoned in Belgium (unharmed) Organized Theft Case StudyEnglish vehicle collects HVG in IrelandAt a truck stop in Northern France the driver and load are hi-jacked20 hrs later English driver found abandoned in Belgium (unharmed)Vehicle and empty trailer found abandoned in Holland Organized Theft Case StudyEnglish vehicle collects HVG in IrelandAt a truck stop in Northern France the driver and load are hi-jacked20 hrs later English driver found abandoned in Belgium (unharmed)Vehicle and empty trailer found abandoned in HollandIt is suspected that the HVG were moved through Germany to Poland for distribution in the FSR Organized Theft Case Study29•Eight Nation involvement•Who investigates ?•Will this crime now be viewed as an Insurance issue…?? Organized TheftSupply Chain Security – Best Practice•Establish a standard for all transactions•Preventive in nature.•Comprehensive–Includes shipper, carrier – DRIVER, customer•Reward good performance •Monitor compliance•Keep the freight moving - At rest is at risk. •Require driver sign-off and monitor•Escalate issues of non-compliance – next time it could be a


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UT Knoxville BUAD 331 - BA 331 Chapter 10

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