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NETWORKING EVENTS

GLOBAL SUMMITSOct 27-29 – Huntington Beach

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Sept 17 – Columbus, Ohio

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Sept 16 – London

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RECENT POSTINGS

The SIG Career Network is

bursting with opportunities.

New jobs are posted daily by some

of the best known global companies in the world for those

seeking careers in sourcing, outsourcing, procurement and

related functions.

For more information go to: www.sig.org/career-center.php

NEW to the Career Network!

• FIS – posted June 23:

• Senior Strategic Procurement Manager

• US Cellular – posted June 16:

• Vendor Manager

• Briarlake Partners – posted June 12:

• Category Manager

• ISSG – posted June 11:

• Portfolio Executive, Operations

• Bloomberg – posted June 10:

• Negotiation Specialist

• HBO, Inc. – posted June 9:

• Inventory Control Specialist

• Illinois Tool Works – posted June 3:

• Senior eSourcing Specialist

• CIGNA – posted May 27:

• Senior Strategic Sourcing Specialist

• HUB International – posted May 26:

• Senior Analyst, Procurement

• Lincoln Financial Group – posted May 19:

• Senior Sourcing Manager – IT

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Join the discussion in SIG’s Peer2Peer Resource program too!

Stay connected with other SIG members through various social media channels

SOCIAL MEDIA

bit.ly/SIGBlog

New Topic Each Week2:00 pm Eastern

(11:00 am Pacific)

Upcoming Free SIG Webinars:

July 14, 2015Solution Deep DivePresented by Denali Group

July 23, 2015Solution Deep DivePresented by Zycus

August 6, 2015Thought LeadershipPresented by Zycus

August 11, 2015Solution Deep DivePresented by MBO Partners

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Upcoming Town Hall Teleconference:

July 8th

Risk…Not Just Your Risk Officer’s Job

Presented by:

Dawn TiuraPresident & CEO

Sourcing Industry Group

SIG Town Hall Teleconferences

bring a small group of buy-side ONLY attendees together for a facilitated

discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.

Calendar of Town Hall Teleconferences

Taking place at 1:00 pm Eastern on the following dates:

February 11 August 12 April 8 September 9 May 13 October 14

June 10 November 11July 8 December 9

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SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users

Symposiums 2015:

Minneapolis, MN – Mar 25

Toronto, Canada – June 1

Columbus, OH – Sep 17

New York, NY – Oct 15San Francisco Bay Area – Nov 10

Regional Roundtables 2015:

Houston, TX – May 13

London – Sept 16

Washington, D.C. – Oct 1

Raleigh, NC – Nov 5 Sydney, AU – Nov 11

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SIG Global Summits are semi-

annual events with 350-450

decision-makers in attendance

• Non-commercialized

• Hundreds of industry thought

leaders

• 70% buy-side

• 4-5 keynote sessions

• Global brands

• 3 days of networking

• CPO Roundtables

• Nearly 50 breakout sessions

69% of delegates are director level or above, of which 43% are VP/C-level

www.sig.org/fall15

Recent speakers include:

For more information go to: www.sig.org/siguniversity

Online certification program

Associate, Professional, Advanced Professional and Executive level courses

Modules with lessons, formative assessments, summative testing and final proctored exam

Certification good for 5 years

Interested in providing input?

Let us know!

For more information go to: www.sig.org/universityoutreach

Partnering with Universities

Introducing students to seasoned supply chain executives

Sharing thought leadership with students in class, SIG University courses and at SIG events

Giving access to internship and job postings on the SIG Career Network

Allowing students to get real world insight into supply chain careers

Finding tomorrow's supply chain professionals today

The Dawn of Risk Management

Harnessing the Power of Watson

Louis Ferretti, Project Executive

June 30, 2015 v2

• Lou is the project executive responsible for developing and leading global and

strategic programs across IBM’s global supplier network:

- Environmental Compliance

- Supply Chain Social Responsibility

- Conflict Minerals

- Risk Management

- Business Continuity Planning

- Sustainability

• He is also Global Procurement’s representative to IBM’s Corporate Crisis

Management Team.

• Lou is a graduate of The City University of New York with a BS in Engineering

Science and has held senior management/executive positions in Engineering,

Procurement, Materials Management, Supply Demand, Operations, etc.

12

Louis Ferretti

ferretti@us.ibm.com

• IBM is a globally integrated technology and consulting

company headquartered in Armonk, New York. With

operations in more than 170 countries, IBM attracts and

retains some of the world's most talented people to help

solve problems and provide an edge for businesses,

governments and non-profits.

13

About IBM

Risk, Innovation and the Power of Watson

Setting the Scene

Risk at an Enterprise Level

An Array of Risks

Loss Events – 2014

Uncovering and Managing Risk

Introducing Risk Rover

14

Agenda

© 2014 IBM Corporation

.

The Dawning of a

New Way to Manage

Supplier & Supply

Chain Risk

http://en.wikipedia.org/wiki/Typhoon_Haiyan

The IBM Watson Risk TeamLouis Ferretti

Thomas Ward

Chester Karwatowski

Hans-J Eickelmann

Introducing the Risk

Rover concept using IBM

Watson Content Analytics

An Extreme Blue™ Project

15

RISK is one of the SIX mega-trends impacting enterprises around the world

• Managing market and political uncertainty is more complex than ever

• Accelerating global shifts pose new risks; resiliency/responsiveness differentiate

• Evolution to a holistic view of risk management

• Risks can be hedged through intelligence

Ris

k

Co

mp

lex

ity

IBM Chief Supply Chain Officer Study Identified The Top Five Challenges

Risks, both operational and financial, is the #2 concern of supply chain executives worldwide

Supply chains have become increasingly more global and complex, bringing with them greater challenges and risks

• Japan earthquake / tsunami

• Thailand Flooding

• Hynix China Fire

• Philippines Typhoon

• Thailand State of Emergency/Martial Law

• Ukraine Political Unrest

• Russian Sanctions

• Gaza Bombings

• Manage risks within the extended supply chain based on continuous risk assessment

• Utilize a collaborative and structured approach • Reduce vulnerability, increase resiliency and ensure supply

continuity via mitigation planning

Risk Management System

Risk

Assessment

Risk

Mitigation

Planning

On-going

Risk

Monitoring

and Control

1. Globalization Redefined2. Technological Progress3. Population Migration

4. Risk Complexity5. Sustainability Imperative6. Informed Customer

Major factors affecting the enterprise today

Managing Risk is an imperative for Business Continuity Planning

16

Business Continuity Planning & Supply Chain Risk – An Overview

16

External Environment

Senior

Leadership

Approval and

Ownership

Business Strategy

Operational Model

Financial Model

Emerging

Risks

LowM

edium-Low

Medium

-High

High

HighMedium-HighMedium-LowLow

Sample

Sample

Sample

Sample

Sample

Sample

Sample Sample

Sample Sample Sample

Sample

Sample

Sample

Sample Sample

Sample

Sample

Sample

LowM

edium-Low

Medium

-High

High

HighMedium-HighMedium-LowLow

Sample

Sample

Sample

Sample

Sample

Sample

Sample Sample

Sample Sample Sample

Sample

Sample

Sample

Sample Sample

Sample

Sample

Sample

Impa

ct

Likelihood

Reputation

Board / Audit

Committee

Review

Relationship with critical suppliers:

Ability to manage the end-to-end supply chain, including

the dependency on critical suppliers

Risk

Management

Competitive

Advantage

Enablement

EffectivenessProgram

and Practices

LeadershipReport Communicate

Monitor Implement

External

Research

Executive

Interviews

A systematic approach to Identify, Assess and Address risk

Enterprise-wide view

Focus on both hazards and missed opportunities

Improve business results and drive competitive advantage

IBM has developed a robust Risk Management program – and Supply Chain risk

management is an important focus area

IBM Enterprise Risk Management

17

Supplier Failure

Currency

Political

Fuel Costs Social Responsibility

Intellectual Property

Attrition Rates

Labor Disputes

Labor Costs

EnvironmentalRegulatory Compliance

Product Safety

Taxes

Responsiveness

Brand Impact

Geophysical

Supply Chain Risks

Cyber Security

18

World Wide Risk Events 2014

19

Our objective is not to eliminate risk, because without risk there is no progress.Instead it is to ensure we can manage and mitigate risks.

SocialListenin

g

MarketIntelligence

Socialand

EnvironmentalLeadership

BusinessAnalytics

Supplier Total Risk Tool & Process

Risk

Assessme

nt

Risk

Mitigation

Planning

On-going

Risk

Monitorin

g and

Control

• Comprehensive risk assessment

• Ongoing mitigation

Protections against loss of

revenue and profits by minimizing

likelihood and severity of supply

chain disruption

Solution

ISC Risk Management Tools

Managing market and political uncertainty ismore complex than ever

Risks can be hedged through intelligence and holistic view of risk management

1. Incorporating key information about global supply chain from market intelligence communications

2. Augmentingexisting information not available via current market intelligence processes

3. Listening for sentiment and trends for critical items and events

Recognition

•IBM Outstanding Innovation Award

•Patent for impact likelihood algorithm

•CSCMP finalist for Supply Chain Innovation Award

Uncovering and Managing Supplier / Supply Chain Risk

20

Predicting Risk with Certainty

Domain:

Risk team receives many reports and updates re. threats (man made and natural) that can impact supply

continuity. In spite of the threat of a supply chain disruption, most do not come to fruition. Taking

preemptive actions such as qualifying another source, pull inventory and/or move the business to another

supplier, when threatened, and the threat does not materialize, produces a measure of distraction, lost

time and wasted effort by the sourcing teams.

Concept:

Search recent and past social, political, economic unrest events to determine if they: a) do come to

fruition as forecasted, and b) if they do, was there an impact to in country commerce, aka disruption

transportation, roads, airports, etc.? Conduct same exercise for climatic events.

Evaluation of data can show what is the likelihood of an event a) coming to fruition (eg disruption) and b)

if it does come about as forecasted, what is the likelihood that supplier’s business will result in

interruption of supply and/or services?

Data Sources:

Collect and analyze vast array of news reports of social, political, economic unrest events as well as

climatic events – over last x years.

Benefits / Opportunity:

Procurement, Engineering and Supplier resource conserved and only expended when situation indicates

a high likelihood of an event materially impacting the supply chain.

“Risk Rover” – Watson Project

21

As per survey report published by World Economic Forum 2013 @Davos

Source: http://www3.weforum.org/docs/WEF_RRN_MO_BuildingResilienceSupplyChains_Report_2013.pdf

events = {“Extreme Weathers”, “Natural Disaster”, “Geo-political Turmoil”, “Pandemic”, “Hazards”}

Supply Chain Disruptions : A Global Debate

22

Risk Rover using Watson Content Analytics (WCA)

• Project funded via IBM internal ISC Venture Capital

• Sole Supply Chain Project nominated in 2015 for Extreme Blue™

• Extreme Blue™ is IBM's incubator for new Talent and Technology

• Analyze Climatic Risk Events using WCA utilizing

– Social Listing

– Analytics & Big Data

– Mobile

– Cloud

• Top Talent Interns selected to support 12 week event

• IBM Risk Team consists of technical and business Mentors

• Project’s 3 Objectives

– Minimum - Proof of Concept Validation

– Target - Expand to additional predictive analytics

– Stretch - Expanded into Watson Q&A type insights

23

Vongfong Japan 2014 Oct 3rd to 14th• http://www.gdacs.org/report.aspx?eventid=1000102&episodeid=46&eventtype=TC

Source Wikipedia

Source GDACS

One Single Risk Events relevant to IBM Production Supply Chain

24

Transparent Supply Chain – Geospatial Map Alerts

- Possible Supplier/Supply Chain Opportunities for Disruptions

25

Risk, Innovation and the Power of Watson

Outlooking to gain analtical/big data insights

- re. forecasts and impacts

Validate Proof of Concept

Expand to other climatic events and then beyond

• 26

Looking Forward

27

Innovations by