Supply Chain Risk Management

As the world economy changes with increasing velocity, global supply chains grow correspondingly more complex and vulnerable. While rapid advancements in automation, single sourcing, cloud computing, and off-shoring in emerging economies have provided competitive efficiencies for organizations, these advantages are threatened by a growing array of risks—from cyber-warfare campaigns, opportune terrorism, and global pandemics to traditional risks arising from natural disasters and economic disruptions. In this volatile business environment, a deep understanding of supply chain ecosystems and the organizational resiliency to respond quickly to threats and their impact is critical to business success.

Taking a data-driven, financial approach that measures both risk and its mitigation, Marsh Advisory's Risk Consulting Solutions provides you with supply chain risk management tools that provide unique, proprietary solutions that can help organizations ensure that the right plans, processes, and procedures are in place to remain competitive and overcome adverse events.

Service Highlights

Marsh Advisory offers solutions tailored to each client’s specific supply chain risk management needs. We help assess risks and design and implement value-based solutions in relation to your business drivers and priorities. By increasing the transparency of critical dependencies and resources within your supply chain, we enable your organization to make better, risk-informed decisions to minimize the impact of a shock and expedite trade recovery, optimize supply chain resiliency, and exploit opportunities. Our solutions help ensure that:

• The supplier and distribution relationships you rely on will still be there when you need them.
• Your supply chain risk management strategies are risk intelligent, agile, and resilient.
  
• You can maximize your risk management investments.

Supply Chain Risk Management Program

Using detailed data, analytics, and mapping, our supply chain risk management program evaluates exposures throughout your organization’s extended supply chain; identifies, measures, and prioritizes interdependent risks and single points of failure; and develops a customized risk mitigation and transfer approach based on your business objectives.

Examining your organization’s supply chain through a value-driven lens, we prioritize and segment key products and services for risk identification. To help minimize volatility and position your organization for sustained growth, we identify and measure the impacts of disruptions across the extended supply chain by focusing on the products and services that are aligned with your organization’s core value drivers.

Marsh Advisory’s experts provide end-to-end detailed mapping of product, cash, and information flows. We can then take an even deeper dive into the resiliency of critical internal and external resources such as people, technology, physical assets, and relationships that generate value for the organization.

Supply Chain Resiliency Business Analytics

We can help optimize the delicate balance of efficiency and resiliency by providing the intelligence and analytics to effectively allocate risk resources within your organization. Working with our business analytics experts, we identify correlations and mitigation options for single points of failure and resiliency gaps. These options are quantified and modeled to the return on risk investment for both strategic and tactical decisions. Our analysis can show decision makers whether inventory consolidation benefits far exceed the carrying costs of an additional distribution center, for example.

Resiliency Integration

We can seamlessly assist with the integration of the risk financing and mitigation solutions that provide the greatest RORI. Further, we have world-class expertise in business continuity, reputational risk and crisis management, product risk, human capital, disaster recovery, property risk consulting, and forensic accounting and claims services to expedite the execution of the identified enhancements of your supply chain. These same resources can be called upon to assist with recovery following an actual supply chain disruption.

Additionally, our detailed analysis can serve as the risk diagnostic prerequisite required by insurance companies. Marsh Advisory can help you develop appropriate risk financing options and market approaches, whether for risk transfer via insurance or alternative risk financing such as catastrophe bonds or captives.

Supplier Resiliency Evaluation

Because supply chains increasingly rely on third parties, when a disruption occurs, any delay in trade recovery can allow a competitor’s more resilient supply chain to grab market share. Clearly understanding the financial, strategic, governance, behavioral, ethical, and operational strengths and vulnerabilities of key suppliers and buyers can give your organization a competitive advantage.

Our supplier resiliency evaluation assists in developing a review process of your multi-tiered critical suppliers’ resiliency  programs which includes:

• A supplier assessment through surveys and on-site evaluations.
• A process for analyzing, filtering, and scoring supplier responses.
  
• A reporting process, which will drive risk mitigation activities.

Our comprehensive approach provides greater insight into suppliers’ risks to enable the creation of defensive and offensive strategies, lower supplier risks and costs, and increase supplier resiliency for faster detection and response to critical risks.

Supply Chain Risk Surveillance

Having a real-time supply chain risk surveillance system gives your organization the capability to prepare for and respond to actual or anticipated supply chain risks faster. Our supply chain risk surveillance product leverages information obtained during risk management program development by monitoring and validating the effectiveness of your resiliency strategies.

We then identify and integrate risk surveillance tools into operations and train key employees on processes and procedures to ensure your resources are effectively allocated to achieve an adaptive, resilient supply chain. By continuously monitoring geopolitical threats and tracking risk profile changes over time, volatility risks are minimized so your organization’s reputation is protected.