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Handling Ventures throughout a Process of Supply Chain Manag

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Ashraf Saad

on 21 December 2013

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Transcript of Handling Ventures throughout a Process of Supply Chain Manag

What is SCRM?
The damage that is assessed by its ability of occurrence that is caused by any event inside a company, within its supply chain or environment that could affect the business processes of more than one company negatively in the supply chain.
Supply Chain today and why it is more risky?
Steps for formulating a risk strategy and implementation plan:
a) Understand the risk environment
Handling Ventures throughout a Process of Supply Chain Management: SCRM
Dr Mohamed Abdel-Aziz
Ashraf Mohamed Fathi Aly 10103283
Ahmed Fouad El-Tohamy 10103131
Youssef Roshdy Naguib 7104341
Ahmed Mohamed Fahmy 10103338

We can use the best forcasts and try to do every possible analysis, but there is always uncertainty about future events that brings risk.
Supply Chain Today….
• Faster (Growth, Innovation)
• Cheaper (Lean, Efficient, Savings)
• Quicker (JIT, Short Product Lifecycle, Agile)
• Shorter (Effective, Lead Times)
• Wider (Globalization)
• Lesser ( Back up Vendor , VMI, Resources
• Changing (demands , Technology
• Heavier (requirements , Workload).

b) Identify and Assess Current Risk
c) Quantify and Prioritize Risk
d) Develop Risk Mitigation Strategy and Business Case
e) Develop Implementation Roadmap
Growth of risk management
-organizations usually believe that they will not be hit by a significant catastrophe.
-laissez-faire mind-set seems sensible. Why should they put effort into preparing for activities that will probably never happen?
-But you could ask the same thing about insurance policy. Why do you take out flame insurance when your home is very unlikely to get rid of down?
And the response is the same. Some activities may be very unlikely, but when they do occur the consequences are disastrous.
If an organization is hit by an unexpected problems, it may not have the sources to continue.
In 1992 the Cadbury Report said that company directors should
establish and report on their systems to:
_ Identify significant risks.
_ Consider the likelihood that the risks would materialize.
_ Assess consequences if the risks did materialize.

Categories, drivers of risk:
Intellectual property
Sources of Supply Chain Risks
a)External Factor
-The key function of these exterior threats is that they are outside managers’ control.
-Managers cannot modify the threat, but they can style operations that perform as effectively as possible within a dangerous atmosphere.
-They can style operations to decrease its results.
b)Internal factors
-Inner threats are usually less dramatic, but more extensive in their effects. These are the threats to functions that managers can manage.
Examples are delays, failures, etc.
Managing the risk
a) Identify and assess current risk
b) Identify supply and delivery alternatives
c) Empower your trading partners
d) Select vendors in different geographic regions who supply through secondary ports
e) Fully engage in supplier relationships
f) Take control of logistics processes
g) Build flexibility into processes so you can promptly adapt to changes with minimum impact
h) Optimize inventory buffers and safety stock levels
i) Be proactive
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