Supply Chain Mindmapping
Mindmap for Supply Chain Risk Management
green & ethical seals
norms
ISO90001 revision
standards
Globalization is increasing the
frequency with which supply chains
are affected by disruptions such
as natural disasters and epidemics
at some link in the chain. Such
risk events can have far-reaching
consequences and long-lasting
impact. Companies must ensure that
their supply chains are prepared for
such risks. Together with software
vendor Riskmethods, Supply Chain
Movement has created this mindmap
for supply chain risk management,
outlining the route with road signs
indicating the potential hazards along
the way.
products
services
higher
natural disasters
oil disasters
nuclear disasters
smog/air pollution
ecological disasters
Brexit
North Korea
SCM
Impact on
companies
natural risks
avoid issues
sanction control
EU sustainability regulation
UK slavery act
conflict minerals
strikes
civil unrest
terrorist attacks
political uncertainty
supply chain design
supply chain planning
supplier relationship management
structured data
unstructured data
suppliers
logistic hubs
own plants
countries
own customers
detect patterns with AI/Deep Learning
implement Integrated Business Planning
through big data monitoring
global scope
risk as part of
ethical compliance
multi-tiered supply networks
Diagnose geopolitical exposures
Diagnose Supply
Act
Review improve internal collaboration
criteria for awarding business
part of audits
ongoing supplier qualification
incentives to share sub-suppliers
Review visibility risk beyond Tier-1
network collaboration needed
new skills & talents required
Chain Risk
Plan Management Plan Do
Plan supply chain entities
risk scoring
lack of sub-tier visibility
to unknown logistics service providers (Hanjin)
dependency on outsourcing
foreseeable disruptions
elimination of reputational impacts
quick response to unpredictable crisis
inherent/latent threat detection
cumulative risks along regions, tiers and commodities
identification of supply threats
Check
Execute impact evaluation
Execute early warning detection
leading indicators’ patterns
onboarding of risky partners
best-price procurement
lack of supplier development
procurement focus on savings
Execute create sub-tier visibility
understanding of focus
understanding of mitigation levers
building product redundancy
improve anticipation
& mitigation capabilities
financially
Risk management
solutions
derive impact
quality impact parameters
to solve challenge
to detect impact patterns
to cancel noise
generate workflows
automated relevance checks
4
supply chain
challenges
3
trade-offs
justification of investments in risk management
fast crisis response
prevention activities
skills development
individual metrics
prepared plans ready preventive risk mitigation
support experts available
Mindmap manual
As supply chains become ever-more global in
nature, there is a corresponding increase in
the likelihood of them being affected by risk
events – not only natural disasters, but also
financial volatility, disruptions to infrastructure,
political instability and man-made risks. But
there are other unknown threats in addition to
these familiar ones. Companies must be prepared for every possible risk: Plan.
Supply chain risks have a fairly broad impact
on an organization. From a financial perspective, companies must evaluate the business
at risk they are willing to take or mitigate. To
limit damage to their reputation and further
knock-on effects, companies must make plans
to withstand the potential for product recalls
and PR campaigns. Risks invariably lead to
an increase in rules. Analyzing the impact of
threats gives insight into the possible consequences, which can then translate into impli-
cations for its supply chains: Do.
Supply chain risks create a need for better planning and place greater pressure on
delivery reliability. Upstream supply chain
disruptions could definitely cause production
interruptions and distribution delays. The
dependence on IT is not only an operational
risk, but is also crucial in gaining an overview
of, and responding to, disasters. It is necessary to carefully analyze the implications
and the operational bottlenecks in the supply
chain: Check.
There are several different approaches to
mitigate supply chain risk. Supply chain visibility enables companies to monitor possible
dangers. Developing a number of scenarios
can provide insight into causes and effects.
Flexibility and buffers to soften the blow of
disruptions can be created in various ways,
savings
risk mitigation costs
and supply chain collaboration could also
offer solutions. Tighter controls may be
necessary. By taking these precautionary
measures, companies will be better prepared
to act appropriately when faced with a wide
variety of supply chain threats. Act.
performance
bonus structure
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Time To Recovery (TTR)
alternative sourcing
relocation times
relocation time/lead times
total time to recovery
inventory levels
products/customers affected
procurement
logistics
manufacturing
CSR department
quality
lack of internal collaboration between
on category level
revenue
profit
Plan
bribery
human rights
gender equality
Execute Diagnose regulatory pressures
working conditions
workers safety
Review Plan
infrastructural risks
bankruptcy carriers
fire at suppliers
Diagnose secure environmental compliance
brand protection across E2E supply chain
human risks
Review SUPPLY CHAIN
movement
high fines
market exclusions
blocker to win new business
shareholder concern
zero-tolerance for non-compliance
IT system breakdowns
closure of logistics hubs
Creators mindmap:
short lead times
smaller delivery slots
costly manufacturing stoppage
lack of total visibility
costly activation of 2nd source
2
The perfect
storm
tsunami
storms
floodings
volcano eruption
draught
wildfires
Hanjin
1
customer behavior
expectations
JIT
JIS
vulnerable supply chains
child labor
disease outbreaks
image- & reputation damage by social media
harbor
airports
distribution centers
warehouses
boarders
Lean
low inventory buffers
requirements
sustainable products
ethical compliance
service level
differentiation
demanding service levels
29