1. ISCOM/376 Supply Chain Disruption
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ISCOM/376 Supply Chain Disruption XX

2. Outline Possible risk from primary suppliers located in Antarctica
How to enable the supply continuity
How to find a solution using :
Detection
Mitigation
Recovery
How to value your network approach to manage disruption
Hello sir or ma’am,
Today my team will be showing you a brief slide show to manage the identified risks that come from one of our primary suppliers being located in Antarctica. My team understands it is imperative to understand the network of risk and want to share our concerns with the company.

3. Possible Risks Quality of Product Weather Conditions Supplier Timing
Changes in Raw Materials
Some of the possible risks Small Molecule might encounter to be disruptive to the supply from the location in Antarctica. These risks could be quality of product, weather conditions or changes, timing of the supplier, and any changes to the raw materials.

4. Possible Risks Continued
Supply Costs
Faulty
Damaged
Theft
Also supply costs, faulty or damaged product, and theft of the product in transit. All these risks can be very disruptive to Small Molecule.

5. Risks that focus on to enable of supply continuity
Low cost global sourcing has become a competitive necessity for most retailers and manufacturers. Global sourcing can increase continuity risk by increasing the overall level of complexity and by increasing the likelihood of disruptions caused by certain threats such as terrorism or by changes in the political or regulatory environment.
 Managing continuity risks in the supply chain is a process that inevitably involves working with these third parties to plan, execute and monitor continuity strategies. The supply chain complexity brought about by global sourcing can also complicate and delay recovery efforts as, for example, communications delays can result from time zone differences, language or cultural barriers (Walsh, 2003).

6. Risks that focus on to enable of supply continuity cont…
Price Risks
When the price of raw materials in your supply chain suddenly changes, the impact on your bottom line can be significant. Ineffective price risk management can seriously affect your costs, profitability and company performance.
Volatility and inflation can disrupt a supply chain with a rapid increase of supplies. This can make forward-planning difficult, unless an organization uses advanced forecasting software. Organizations who are looking to reduce price risks should purchase and sell hedge contracts, especially in commodity markets. They should also secure contracts with suppliers if they believe prices will rise (River Logic, 2018).

7. Detection
Detection begins with being able to see the complete chain from manufacture to end user. This case you are the end user of the product which you use in your manufacturing process.
Monitoring of the entire supply chain is required for detection to occur.
You may not see any issues at your direct supplier but you also have to ensure they have no disruptions from their supplier.
Natural disasters in one region can cause disruption in the supply chain of your supplier and eventually trickle to you.
Most companies only focus on the supply chain from their dock to their customer.

8. Mitigationon
The supply chain is less likely to be severely impacted if there is
adaptive capacity (recovery)
information sharing/visibility (warning)
For risk mitigation there are handling options
Assume/Accept – With this the company is acknowledging the existence of a particular risk, they will make the decision to accept it without trying to control it. Approval from senior leaders would be required.
Avoid – The company would adjust their requirements of constraints to help eliminate or reduce what the risk is, this adjustment could need funding, schedule, or even technical requirements
Control – The company would try to implement actions to minimize the impact or possibly the likelihood of the risk all together.
Transfer – A company would “reassign” accountability, responsibility, and authority to another stakeholder that could be willing to accept the risk
Watch/Monitor – Consistently monitoring the environment for any types of changes that may affect the nature and/or impact of the risk.
The MITRE Institute, September 1, 2007, MITRE Systems Engineering (SE) Competency Model, Version 1, pp. 10,

9. Recovery Resilient Framework Anticipate Risk Assess Risk
Act Against Risk
Designate a business continuity coordinator
As stated in the book of Achieving Supply Chain Integration, “The ability to quickly recover from a disruption is an important third step in managing supply chain disruptions. While detection and mitigation are used to improve the continuity of firm operations, the ability to recover from the impact of a disruption is created by the resiliency of the supply chain. Methods such as redundancy and hedging of supply sources are ways to build resiliency and ensure long-term survival of the firm” (Autry & Moon, 2016, p. 244).
Using firm’s supply chain more resilient:
- Use of select human
- Use of organizational
- Use of physical resources
Recovery is dependent on Small Molecule company resilient framework. Identifying potential risk can help them explore controls and be ready for when there is a disruption in supply flow from the Antarctica supplier. “For example, having employees in the firm who know how to complete post disruption analyses can greatly influence the ability to recover from disruption events. Similarly, having predefined or self-executing contingency plans that can be effectively implemented is an important resiliency capability for responding and recovering from a disruption, as is the ability to quickly redesign the physical supply chain” (Autry & Moon, 2016, p. 244).

10. Value our network approach to manage disruption
As shown in Figure 10-1, many managers may look at collaborative and integrative capabilities as being needed only within their firm (orange) or between themselves and first-tier suppliers (blue). However, a broader network orientation and approach toward supply chain integration would allow them to see the need to strategically integrate across a variety of links and nodes in the entire supply network (University of Phoenix,  2014).
Now take a look at Figure 10-2, Here my team and I introduce the idea of matching the level of integration to the given risk level in the network and the possible conditions that our company may face. We may want to move toward direct buys of raw materials and even ownership of raw material sources. If possible, we should consider working more directly with farmers and cutting out some of the middlemen where we used to buy raw materials (University of Phoenix,  2014).
Figure 10-1 Considering Breadth of Integration in the Network
Figure 10-2 Network Risk Versus Integration Level

11. References
Autry, C.W. & Moon, M.A. (2016). Achieving supply chain integration: Connecting the supply chain inside and out for competitive advantage. Upper Saddle River, NJ: Pearson.
Dean Baxter. (n.d.). Supply Chain Disruption: The Bad, The Ugly, & The Future, Real-Time Visibility - Supply Chain 24/7. Retrieved from uption_the_bad_the_ugly_the_future
RiverLogic (2018) retrieved: risk-and-ensure-continuity
The MITRE Institute, September 1, 2007, MITRE Systems Engineering (SE) Competency Model, Version 1, pp. 10,
University of Phoenix. (2014). Integrating Supply Networks. Retrieved from University of Phoenix, INCOM376 - Supply Chain Disruption website.
Walsh, Damian (2003) retreived: resource.com/articles/08exe_p24.shtml
References:
Autry, C.W. & Moon, M.A. (2016). Achieving supply chain integration: Connecting the supply chain inside and out for competitive advantage. Upper Saddle River, NJ: Pearson.
Dean Baxter. (n.d.). Supply Chain Disruption: The Bad, The Ugly, & The Future, Real-Time Visibility - Supply Chain 24/7. Retrieved from
RiverLogic (2018) retrieved:
The MITRE Institute, September 1, 2007, MITRE Systems Engineering (SE) Competency Model, Version 1, pp. 10, 40-41
University of Phoenix. (2014). Integrating Supply Networks. Retrieved from University of Phoenix, INCOM376 - Supply Chain Disruption website.
Walsh, Damian (2003) retreived: