THIS IS A PRESENTATION ON THE TOPIC STRATEGIC SUPPLY

CHAIN RISK

INDEX NUMBER
SB/PST/20/0008

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 STRATEGIC SUPPLY CHAIN RISK
OUTLINE OF THE PRESENTATION
• WHAT IS STRATEGIC RISK

• REDUCING STRATEGIC RISK THROUGH BETTER PRODUCT

DEVELOPMENT

• ALIGNING NEW PRODUCT AND RISK

• PROTECTING INTELLECTUAL PROPERTIES

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WHAT IS STRATEGIC RISK
• What do we mean by the term strategic?
something is strategic if it has the ability or potential to affect the
integrated whole, which means affecting an entire business or its
continuity in the long term.

Strategic risks can be defined as an array of internal and external events

and trends that can devastate a company’s growth trajectory and
shareholder value. Therefore, strategic risks affect the core reason for
being in business.

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REDUCING STRATEGIC RISK THROUGH
BETTER PRODUCT DEVELOPMENT
• It is widely accepted that the successful development of products and
services is an important part of what differentiates one from the next.
In fact, a large body of literature has identified product development as
a core process playing a major role that supports global innovation and
competitiveness.

• It is also a process that when performed poorly has strategic risk

implications, particularly as it relates to a company’s reputation and
brand equity.

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Benefits of well designed new product
development
• Reduced market risk

• Shorter development times

• First mover advantages that capture market share or create barriers to

entry.

• Reduced operational costs, thus get it right the first time with minimal
reviews.
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New product development best practices that
reduce risks are;
• Concurrency:
Concurrency during product development is defined by the
simultaneous development of products along with the physical
processes required to produce them and the simultaneous rather than
sequential involvement of functional groups during development.

• Early Involvement. Most executive leaders now appreciate the value

of external involvement during product development, and they further
recognize the need to involve suppliers and customers earlier rather
than later in the process.
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Cont’d
• Use of Information Technology. Successful product development
groups rely extensively on software to accelerate and improve the
development process, another best-practice characteristic.
Examples of information technology used in product development are:
• computer-aided design (CAD)
• computer-aided manufacturing (CAM)
• failure mode effects analysis (FMEA) tools
• 3-D printing

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Cont’d
• Linking R&D and New Product Development: Best-in-class
companies have in place a process to develop and validate new
technology and then link that technology to the product development
process. The linkage of one process to another ensures that market-
ready technology can be designed into new products.

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ALIGNING NEW PRODUCT AND RISK
• The convergence of product development and risk management is an
evolving practice that aligns well with the quality management
principles of prevention and quality at the source.

• But, it is challenging to locate case examples where companies

explicitly address product development and supply chain risk
simultaneously. While integrated product and process development is
well understood, the integration of supply chain risk and new product
development is not.

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Cont’d
The characteristics of a process that simultaneously brings
together product development and risk management include the
following;
• Supplier selection must happen early rather than later in the design
process.
• Each cross-functional team involved in product development, with the
help of the supply management group, will have responsibility for
identifying a set of supply chain risks that may affect their part of the
project.

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PROTECTING INTELLECTUAL
PROPERTIES
Intellectual property refers to creations of the mind, including
inventions, literary and artistic works, symbols, names, images, and
designs used in commerce.
Intellectual property falls into two main areas namely industrial
property and copyright.
• Industrial property includes inventions (patents), trademarks,
industrial designs, and geographic indications of source.
• Copyright protects creative works by providing the copyright holder
exclusive right to control reproduction or adaptation of such works for
a certain time.
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Suggestions that relate to protecting
intellectual properties
• Develop Contracts. It is always a good idea to have a written and
signed document that describes the expectations of the buyer and
seller.

• Limit Exposure to high- intellectual property risk countries. Advanced,

industrial countries will have legal systems that can be trusted to treat
foreign companies fairly, including the protection of intellectual
property.

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Cont’d
• Register Trademarks and Patents.

• Divide Requirements. Another way to protect intellectual property is

to disaggregate purchase requirements among several suppliers rather
than providing a single supplier with access to an entire design.

• Seek Legal Support and Remedies. Legal experts can help identify
preventive measures as well as legal remedies when intellectual
property violations occur.

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 LITERATURE SOURCE

Schlegel, G. L. & Trent, R. J., (2014). Supply Chain Risk Management:

An Emerging Discipline (Resource Management) (1st Edition)
Publisher: Taylor and Francis Group.

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THANK YOU
MERCI
GRACIAS

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