Risk Management for Global Supply Chain

Transcription

1 Risk Management for Global Supply Chain Yi-Chih Yang Associate Professor, Department of Shipping and Transportation Management, National Kaoshiung Marine University, Taiwan

2 Outline Definition of supply chain management Concept of supply chain integration Categories of supply chain management Introduction of supply chain risk management Typical process of risk management Case Study of risk management

3 1. Definition of supply chain management Supply chain management is an enterprise strive to build closer working relationships with key suppliers and key customers, well-integrated logistics process are key components of successful supply chain management (UNCTAD, 1998). The concept of a supply-chain is about managing coordinated information and material flows, plant operations and logistics through a common set of principles, strategies, policies, and performance metrics throughout its developmental life cycle( Lee and Billington, 1993).

4 A supply chain is a society( a network of members, termed a group) formed by autonomous entities( and their systems) by bonding together to solve a common problem with their collective and collaborative efforts, they sustain the progress of each member as well as the group. Collaboration between members requires effective communication. In a collaborative environment, a member may modify its norms of behavior to accommodate other member s perspectives. (Bond and Gasser,1988)

5 2. Concept of supply chain integration Supply chain management is the integration of business processes from end user through original suppliers that provides products, services and information that add value for customers. Supply chain management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders (Lambert, Douglas, and Martha, 2000).

6 2.1 Feature of SCM Firms have increasing been adopting enterprise/supplychain management techniques in order to deal with integration issues.( Chandra and Kumar,2001) Supply chain is a cooperative system. Supply chain exits on the group dynamics of its members. Negotiation and compromise are norms of operation in a supply chain. Supply-chain system solution are pareto-optimal. Integration is supply chain is achieved synchronization.

7 2.2 Eight Key SCM process Customer relationship management Customer service management Demand management Order fulfillment Manufacturing flow management Supplier relationship management Product development and commercialization Return management;

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9 3. Categories of Supply Chain Management According to the report titled with ( Added-Value logistics services to be offered in developing countries) published by UNCATD in the 1998 illustrated that supply, production and distribution of manufacturing sector need a series of operational process to achieve it, such as, transportation, delivery, storage and associated information management. The category of Logistics Operations based on manufacturing process location concept were divide into Inbound Logistics Operations, Production Logistics Operations, Outbound Logistics Operations.

10 Global Supply Chain has involved in the logistics actives of at least two countries. Similar to domestic logistics it were composed of Physical Supply and Physical Distribution. 供應商製造商物流中心顧客 實體供給 (Physical Supply) 資訊流 實體配送 (Phyical Distribution)

11 Scope of of SCM 物流操作 Operations 運輸 Transportation 倉儲 Warehousing 資訊科技 Technology 客戶關係管理 CRM Total Solutions 供應商關係管理 SRM 附加價值 Value-Add 供應鏈管理 SCM

12 全球供應鏈之基本類型 全球供應鏈之實體配送依其服務功能之差異, 可將其分為下列四種基本類型 : 1. 傳統系統 (Classical System): 供應商將貨物送至各國之物流中心, 顧客直接向該國物流中心訂貨, 該物流中心將負責國內地區貨物之倉儲及配送等服務, 以滿足國內顧客之需求 2. 轉運系統 (Transit System): 供應商 / 出口商保有存貨 處理訂單及理貨功能, 各國顧客直接向供應商訂貨, 貨物經由該國物流中心轉運後, 配送給顧客, 物流中心僅負責國內貨物之配送, 並不保有庫存功能 3. 直接系統 (Direct System): 供應商直接由所在國家將貨物配送至各國顧客, 而不在各國設置物流中心進行配送 4. 國際配送系統 (Regional Distribution System): 在數個國家設置一國際性物流中心, 以統籌鄰近國家之訂貨 倉儲及配送等作業

13 (1) 傳統系統 (2) 轉運系統 H C S C E DC C E DC C C C (3) 直接系統 E C C C (4) 國際配送系統 H E DC C C C C E: 出口商 C: 顧客 DC: 物流中心 H: 具有存貨功能 S: 僅具轉運功能

14 Development of Global Supply chain 1980 年以前 : 日本生產型 ( 星形流通系統 ) 年 : 海外分散生產型 ( 情報分散系統 ) 年 : 海外分散生產型 ( 情報集中系統 ) 年 : 區域統籌中心型

15 日本生產模式變化趨勢

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17 日本全球供應鏈發展趨勢

18 4. Introduction of Supply Chain Risk management Supply chain risk management (SCRM) is to collaboratively with partners in a supply chain apply risk management process tools to deal with risks and uncertainties caused by, or impacting on, logistics related activities or resources (Norrman and Lindroth, 2002). Supply chain risk management is the management of external risks and supply chain risks through a coordinated approach among the supply chain members to reduce supply chain vulnerability as whole. (Martin Schristopher,2002).

19 4.1 Intersection of supply chain management and Risk management Supply Chain Management Supply Chain Risk Mangement Risk Management

20 4.2 Feature of Supply chain risk management Risk can be managed especially by developing a common network strategy, best practices modes of action and contract policies. Supply chain risk management process can be carried out together with the business partners Effective information sharing among network partners can help in cost management and pricing, shorten leadtimes, lower inventories and reduce failures cased by wrong and missing information.

21 SCRM total Solutions PO/Forecast Customers PO/Forecast Retailer /Warehouse Distribution SO/Forecast PO/Forecast Replenishment Order DC Delivery Service Request Delivery Trucker Delivery Forwardin g Request Air Cargo Customs Clearance Supplier Forwarder Ocean Cargo Container Terminal Taiwan Customs

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23 Framework of of SCRM Europe Office Asia Offices U.S.A. Offices Intranet Central Database Customer Relationship Supply Chain Management Partner Relationship Enterprise Resource Planning Track & Trace Business Intelligence EDI EDI Internet, Extranet VAN Customers Suppliers Agents Custom B2Bi

24 5. Typical process of risk management Risk identification Risk assessment Identification and implementation Risk monitoring

25 5.1 Category of Supply Chain Risk

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29 Flow Chart General Operation Procedure Shipper ParticipateS Consignee Truck Warehouse transportation Warehouse Truck Customs Customs

30 Participates Shipper shipper; supplier Warehouse Warehousing & Transportation Service Center, Airport terminal Customs Officer, Broker Carrier Airlines, Trucker, Forwarder Consignee Buyer, Receiver, Bank (L/C)

31 Risk the Multiple Risk in Whole Procedure!! All steps hide the Risk of Damage!! The Damage Visual - Dent, wet, torn, missing Un-visual shaking, vibration, tilted, up-side down, dust...

32 The Places of RISK Shipper s dock handling Pick-up - transportation Unloading and terminal Origin terminal handling Customs inspection Airline palletizing Flying transportation Connection flights & necessary ground handling Discharging De-palletizing Destination terminal handling Delivery - transportation Consignee s receiving dock handling

33 Integration A Connection Platform Vendor / Sub-cons Acknowledge Clients service request The characters of the goods Plan / Preparation SOP Proper tools Aids Contingency plan MSDS Client s disposal Measurement Shockwatch Checking sheet Others Irregularity report Surveyor report

34 5.2 Operational process in SCRM Mutual Identification Monitoring Supply Chain Risk Management Mutual Assessment Mutual Implementation Mutual Means for Risk Reduction Sources: Jukka Hallikas and R. Veli-Matti Virolainen(2004), Risk management in supplier relationships and networks, Supply chain risk, ASHGTE.

35 6. Case Study Dent, Wet & Torn ABC logistics is assigned by consignee S in Shipment arrived in SIN with dent to the Corners of boxes, wet & torn in different cases. Survey results: 1. No record was filed in SIN SIN to handle airfreight export from terminal shipper A in 2. Only outer packing was KHH under term of EX-WORK. damaged The possible causes: 1. Terminal facility & handling 2. Bulk compartment load 3. Tie-down to ULD 4. Strength of box 5. The survey can only be applied in SIN airport terminal; whenever there s no visual damage to inner goods, no IRR report will be filed

36 Case Study Dent, Wet & Torn

37 Case Study Dent, Wet & Torn ABC Logistics actions: Informed related counterparts shipper, broker, warehouse, trucker, terminal & airlines to get full notice to the damage; persuade / convince to take proper actions: - - Shipper : - Enhance the strength of box - - Broker & warehouse : - Monitor the loading, prevent from wet - - Trucker : - Loading & un-loading with care - - Terminal : - Improve the receiving dock for wet prevention; - Pay more attention of movement in warehouse, - - Airlines : - Utilize ULD - Improve the wet prevention - Utilize aids to avoid the tend to the corner. - - ABC SIN : - Feedback the irregularity with photo; - In case of wet, also the weather condition in SIN.

38 The BASE of Zero Damage IATA GENERAL Packing and Marking of Cargo The carrier reserves the right to refuse the transportation of cargo that is not suitable packed and/or marked The shipper is responsible for ensuring that the cargo is packed in an appropriate way for carriage so as to ensure that it can be carried safely with ordinary care in handling and so as not to injure or damage any persons, foods or property.