SCRM 供应链风险管理

1、Supply Chain Risk Management - a New Focus for Johnson & Johnson in 2011In this Q&A article, Joanne Jaeger, senior director, Enterprise Risk Management - Operations, offers insights and perspectives on Supply Chain Risk Management, a new initiative being undertaken by Johnson & Johnson Supply Chain

2、in 2011.Joanne recaps how this initiative got started, how it relates to Business Continuity Planning and how it will help our operating companies make informed decisions about potential risks in product supply.What is Supply Chain Risk Management?Supply Chain Risk Management (SCRM) is a new initiat

3、ive thats designed to identify vulnerabilities in our supply chains that may impact our ability to supply products to customers. SCRM provides a process to evaluate these risks, and then a process for reducing or eliminating these vulnerabilities.How is SCRM different than Business Continuity Planni

4、ng (BCP)? How do they fit together?SCRM evaluates countless risk factors across the entire supply chain that may impact our ability to supply important products to our customers. Through the SCRM process, products are prioritized by three distinct criteria. These criteria include 1) the relative imp

5、ortance of a product or product platform to public health; 2) implications for the J&J trustmark should there be a problem with a product; and 3) sales / financial implications if supply problems were encountered. The SCRM risk assessment process helps us to prioritize product importance based on th

6、ese criteria; to evaluate relative risks to these products across the full supply chain spectrum; and, finally, to make well-informed decisions about how to reduce or eliminate risks we may face.As everyone knows, the BCP process is, more or less, focused on responding to a single hypothetical event

7、, like a fire or a flood. Both SCRM and BCP involve understanding risks around your business and considering what needs to be done to recover. BCP is very important in terms of preparing a response to a disaster, but its not sufficient to address all the risks in the end-to-end supply chain, like su

8、pplier quality for example.What is the role of the SCRM team?Our role is to make sure that we assess risk in a consistent way across the Johnson & Johnson Family of Companies. Our team is developing a common approach to decision-making about risks in product supply. Another commitment that weve made

9、 is to develop a set of standards and tools that can be used by our operating companies to assess their risks.What are the expected benefits of using this approach?First and foremost, SCRM will help business leaders make well-informed decisions about risks facing their businesses. It will help secto

10、r leaders and senior leadership do the same with a broader view across the Johnson & Johnson Family of Companies. Its a Credo-driven program because our first responsibility is to our customers. If we cant get products in their hands, then we have failed them.How did the team get started in 2010?Fir

11、st, the SCRM team worked together with sector supply chain organizations to evaluate critical products. We had robust discussions about what we would do if something were to happen to these essential pieces of our portfolio. At the same time, a core team began working on creating a very rigorous pro

12、duct risk assessment process that looked at all sources of risk across the entire supply chain.In 2010, we conducted pilot programs to pressure test our process. We picked one product in each sector - Stelara, Splenda and sutures. We put together cross-functional teams that knew these products insid

13、e out. We got together and said, “Here are all the sources of risk in the supply chain. What is the impact of the risks, the likelihood of them happening, and how prepared are we today to deal with them?” We came up with the top 10 risks for each product and focused our efforts on putting together m

14、itigation plans to reduce those risks. We then took feedback from the different teams to make the product risk assessment process more robust and easier to use.What defines a “critical product?”First and foremost, our assessment looks at public health implications - i.e., what would the impact to pu

15、blic health be if our product supply was interrupted. Then, we consider implications for our trustmark and, finally, the financial risk to the business. We worked with leaders in each sector to determine implications, and pressure tested those assumptions with experts. For public health, we defined

16、what the high, medium and low impact would be - i.e., in certain cases, like with our blood screening products, public health implications might be high if our product supply was interrupted. For trustmark, we carefully considered supply interruptions with products that are closely linked with the J

17、&J brand name. For financial matters, weconsidered the impact on net trade sales in the event of a product supply situation. When you consider these criteria for our product portfolio across all three sectors, the impact level and risks implications are very different.Through this filtering process,

18、 we were able to identify those products that we called “critical” or “Type 1” products. This meant that they were in the high” category for public health and/or trustmark, regardless of their financial implications for Johnson & Johnson. Protecting those products is our first priority. While financ

19、ials are important to the health of our business, the driving factors in determining “critical” or Type 1” products are public health and trustmark implications.What are examples of Type 1” products from each sector?Some examples would be Remicade and Prezista in Pharmaceuticals, Sutures in MD&D and

20、 Tylenol in Consumer.What are some of the examples of sources of risk the team identified?The teams identified a number of risks across the supply chain spectrum, such as the risks that are posed when relying too heavily on a single supplier. Sometimes the possibility of a labor strike carries signi

21、ficant implications for product supply, and other times, we have come to realize just how vulnerable we are to security of transportation of our products, depending on the region of the world in which we operate.So how do you quantify or measure the risk exposure?We evaluate risk exposure by using a

22、n equation that considers implications of a product supply interruption for public health, our trustmark and finances; the likeliness of the risk ever materializing; and our overall preparedness. These items are combined to calculate our risk exposure, or the expected impact of an event.What will th

23、e team work on in 2011?For each of the products identified in our 2011 priorities, there is a value stream leader or a franchise operations development leader who best understands that products full life cycle. Were bringing together cross-functional teams for each product and going through the same

24、 process we went through with the pilots. The final output will be a dashboard for each product that will show all the sources of risk for that product, the current conditions around where the risk is and what the opportunities are for mitigation. Each product will have a management action plan that

25、 will include the top risks, mitigating strategies and the resources required toimplement those strategies.We will be evaluating approximately 25 products and three sites by June 2011. Completing these evaluations by June will allow for risk-based decisions as we go into the 2012 business planning c

26、ycle. Thats the real value of this process. It enables us to make better business decisions by prioritizing and quantifying how certain actions can reduce risk.SCRM will help supply chain leaders serve as better business partners with commercial leadership. This process will help businesses prioriti

27、ze and make better investments. Its really all about making informed, risk-based decisions that will add value to the business.Can you tell us more about the three site assessments?Were using the same logic and process that we did in developing the product risk assessment tool. We are piloting this

28、in the first part of 2011 with three sites (one internal manufacturing, one external manufacturing and one distribution center) so that we can take the feedback from the pilots and have the tool ready to roll out in the beginning of 2012. The ultimate goal is the same type of categorization and assessment that was completed on a product level.Where wil