05. Risk Management & Contracts

Paul Fox: 05. Risk Management & Contracts

Paul Fox — Thu, 04 May 2006 22:14:05 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

Level 1	Level 2	Level 3	Level 4
Limited Management	Unilateral Limitation	Shared Mitigation	Designed-in Mitigation
1.Risks may not be explicitly identified. Risk management confined to price and delivery, e.g. fixed price contracts. Consequences may be not be understood. Incidental to capacity requirements, fill rate commitments, NPI and other expedientcies	2.Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order Unintended consequences require and often defy mutual reconciliation Ts&Cs of levered trading partner become tacit Trading Partner Agreement	3.Risk managed across partners. Accountability with the party best able to manage the risk. Risk explicitly factored into pricing Buffering strategies to reduce risk, inventroy, capcity upside, IP security Visibility to monitor risk TPA more all inclusive with operational imparitives and legal coverage	4. Design for Supply Chain Partners contribute to risk reduction in design phase DFSC, design re-use, common BOMS, or manufacturing postponement Continuos collaborative risk management in planning and execution TPA is operational guide as well as legal document for dispute reconciliation, i.e.,Proactive risk reduction techniques supersede risk limiting techniques,collaboratively design in flexibility and DFSC – to reduce risk in entire network, collaborative demand scenario planning with links to performance goals

Paul Fox: 05. Risk & Contract Management

Paul Fox — Tue, 02 May 2006 20:18:47 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

Level 1	Level 2	Level 3	Level 4
Limited Management	Unilateral Limitation	Shared Mitigation	Designed-in Mitigation
1.Risks may not be explicitly identified. Risk management confined to price and delivery, e.g. fixed price contracts. Consequences may be not be understood. Incidental to capacity requirements, fill rate commitments, NPI and other expedientcies	2.Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order Unintended consequences require and often defy mutual reconciliation Ts&Cs of levered trading partner become tacit Trading Partner Agreement	3.Risk managed across partners. Accountability with the party best able to manage the risk. Risk explicitly factored into pricing Buffering strategies to reduce risk, inventroy, capcity upside, IP security Visibility to monitor risk TPA more all inclusive with operational imparitives and legal coverage	4. Design for Supply Chain Partners contribute to risk reduction in design phase DFSC, design re-use, common BOMS, or manufacturing postponement Continuos collaborative risk management in planning and execution TPA is operational guide as well as legal document for dispute reconciliation, i.e.,Proactive risk reduction techniques supersede risk limiting techniques,collaboratively design in flexibility and DFSC – to reduce risk in entire network, collaborative demand scenario planning with links to performance goals

Paul Fox: 5. Risk & Contract Management

Paul Fox — Mon, 01 May 2006 16:49:46 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

Level 1	Level 2	Level 3	Level 4
Limited Management	Unilateral Limitation	Shared Mitigation	Designed-in Mitigation
1.Risks may not be explicitly identified. Risk management confined to price and delivery, e.g. fixed price contracts. Consequences may be not be understood. Incidental to capacity requirements, fill rate commitments, NPI and other expedientcies	2.Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order Unintended consequences require and often defy mutual reconciliation Ts&Cs of levered trading partner become tacit Trading Partner Agreement	3.Risk managed across partners. Accountability with the party best able to manage the risk. Risk explicitly factored into pricing Buffering strategies to reduce risk, inventroy, capcity upside, IP security Visibility to monitor risk TPA more all inclusive with operational imparitives and legal coverage	4. Design for Supply Chain Partners contribute to risk reduction in design phase DFSC, design re-use, common BOMS, or manufacturing postponement Continuos collaborative risk management in planning and execution TPA is operational guide as well as legal document for dispute reconciliation, i.e.,Proactive risk reduction techniques supersede risk limiting techniques,collaboratively design in flexibility and DFSC – to reduce risk in entire network, collaborative demand scenario planning with links to performance goals

Paul Fox: 5. Risk & Contract Management

Paul Fox — Mon, 01 May 2006 04:01:53 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

Level 1	Level 2	Level 3	Level 4
Limited Management	Unilateral Limitation	Shared Mitigation	Designed-in Mitigation
1.Risks may not be explicitly identified. Risk management confined to price and delivery, e.g. fixed price contracts. Consequences may be not be understood. Incidental to capacity requirements, fill rate commitments, NPI and other expedientcies	2.Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order Unintended consequences require and often defy mutual reconciliation Ts&Cs of levered trading partner become tacit Trading Partner Agreement	3.Risk managed across partners. Accountability with the party best able to manage the risk. Risk explicitly factored into pricing Buffering strategies to reduce risk, inventroy, capcity upside, IP security Visibility to monitor risk TPA more all inclusive with operational imparitives and legal coverage	4. Design for Supply Chain Partners contribute to risk reduction in design phase DFSC, design re-use, common BOMS, or manufacturing postponement Continuos collaborative risk management in planning and execution TPA is operational guide as well as legal document for dispute reconciliation, i.e.,Proactive risk reduction techniques supersede risk limiting techniques,collaboratively design in flexibility and DFSC – to reduce risk in entire network, collaborative demand scenario planning with links to performance goals

Dean Strausl: 5. Risk & Contract Management

Dean Strausl — Sun, 30 Apr 2006 17:52:02 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

~~Level 1~~	~~Level 2~~	~~Level 3~~	~~Level 4~~
~~Limited Management~~	~~Unilateral Limitation~~	~~Shared Mitigation~~	~~Designed-in Mitigation~~
\|.Level 1\|.Level 2\|.Level 3\|.Level 4\|\|.Limited Management\|.Unilateral Limitation\|.Shared Mitigation\|.Designed-in Mitigation\|\| 1.Risks may not be explicitly identified. Risk management confined to price and delivery, e.g. fixed price contracts. Consequences may be not be understood. Incidental to capacity requirements, fill rate commitments, NPI and other expedientcies	\| 2.Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order Unintended consequences require and often defy mutual reconciliation Ts&Cs of levered trading partner become tacit Trading Partner Agreement	\| 3.Risk managed across partners. Accountability with the party best able to manage the risk. Risk explicitly factored into pricing Buffering strategies to reduce risk, inventroy, capcity upside, IP security Visibility to monitor risk TPA more all inclusive with operational imparitives and legal coverage	\| 4. Design for Supply Chain Partners contribute to risk reduction in design phase DFSC, design re-use, common BOMS, or manufacturing postponement Continuos collaborative risk management in planning and execution TPA is operational guide as well as legal document for dispute reconciliation, i.e.,Proactive risk reduction techniques supersede risk limiting techniques,collaboratively design in flexibility and DFSC – to reduce risk in entire network, collaborative demand scenario planning with links to performance goals

Dean Strausl: 5. Risk & Contract Management

Dean Strausl — Sun, 30 Apr 2006 17:44:22 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

|.Level 1|.Level 2|.Level 3|.Level 4||.Limited Management|.Unilateral Limitation|.Shared Mitigation|.Designed-in Mitigation||

~~1.Risks~~ Risks may not be explicitly identified.
Risk management confined to price and delivery, e.g. fixed price contracts.
Consequences may be not be understood.
Incidental to capacity requirements, fill rate commitments, NPI and other expedientcies|
~~2.Risks~~ Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order
Unintended consequences require and often defy mutual reconciliation
Ts&Cs of levered trading partner become tacit Trading Partner Agreement|
~~3.Risk~~ Risk managed across partners.
Accountability with the party best able to manage the risk.
Risk explicitly factored into pricing
Buffering strategies to reduce risk, inventroy, capcity upside, IP security
Visibility to monitor risk
TPA more all inclusive with operational imparitives and legal coverage|
4. Design for Supply Chain
Partners contribute to risk reduction in design phase
DFSC, design re-use, common BOMS, or manufacturing postponement
Continuos collaborative risk management in planning and execution
TPA is operational guide as well as legal document for dispute ~~reconciliation, i.e.,Proactive~~ reconciliation

Proactive risk reduction techniques supersede risk limiting ~~techniques,collaboratively~~ techniques

Old Best in Class Points:
Reduced Risk Across Network
Collaboratively design in flexibility and DFSC – to reduce risk in entire ~~network, collaborative~~ network
Collaborative demand scenario planning with links to performance goals

Paul Fox: 5. Risk & Contract Management

Paul Fox — Fri, 28 Apr 2006 17:11:27 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

|~~.Level 1|~~~~.Level 2|~~~~.Level 3|~~~~.Level 4||~~~~.Limited Management|~~~~.Unilateral Limitation|~~~~.Shared Mitigation|~~~~.Designed-in Mitigation||~~

Level 1	Level 2	Level 3	Level 4
Limited Management	Unilateral Limitation	Shared Mitigation	Designed-in Mitigation
Risks may not be explicitly identified. Risk management confined to price and delivery, e.g. fixed price contracts. Consequences may be not be understood. ~~Incidental to capacity requirements, fill rate commitments,~~	Risks recognized, but react unilaterally potentially leading to unintended consequences. Push inventory to suppliers (VMI) or customers (consigned) – Not sure if ~~NPI~~VMI ~~and other expedientcies\|~~ ~~Risks recognized and manipulated (and manipulation reacted to) unilaterally, i.e., Gaming, consigned inventory, over order~~ ~~Unintended consequences require and often defy mutual reconciliation~~ is unilateral if done well? Ts&Cs ~~of levered trading partner become tacit Trading Partner Agreement\|~~ to explicitly state inventory liability – perhaps?	Risk managed across partners. Accountability with the party best able to manage the risk. Risk explicitly factored into pricing ~~Buffering~~ Inventory buffering strategies to reduce ~~risk, inventroy, capcity upside, IP security~~ ~~Visibility to monitor risk~~ ~~TPA~~ ~~more all inclusive with operational imparitives and legal coverage\|~~ risk	Design for Supply Chain Partners contribute to risk reduction in design phase DFSC, design re-use, common BOMS, or manufacturing postponement Continuos collaborative risk management in planning and execution ~~TPA~~ ~~is operational guide as well as legal document for dispute reconciliation~~

Proactive risk reduction techniques supersede risk limiting techniques

Old Best in Class Points:
Reduced Risk Across Network
Collaboratively design in flexibility and DFSC – to reduce risk in entire network
Collaborative demand scenario planning with links to performance goals

Paul Fox: 5. Risk & Contract Management

Paul Fox — Fri, 28 Apr 2006 17:06:24 +0000

Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.

Level 1	Level 2	Level 3	Level 4
Limited Management	Unilateral Limitation	Designed-in Mitigation	Shared Mitigation	~~Designed-in Mitigation~~
Risks may not be explicitly ~~identified.~~ identified. Risk ~~management~~ amnagement confined to price and delivery, e.g. fixed price contracts. ~~Consequences may be not be understood.~~	Risks recognized, but react unilaterally potentially leading to unintended ~~consequences.~~ consequences. Push inventory to suppliers (VMI) or customers (consigned) – Not sure if VMI is unilateral if done well? Ts&Cs to explicitly state inventory liability – perhaps?	~~Risk managed across partners.~~ ~~Accountability with the party best able to manage the risk.~~ ~~Risk explicitly factored into pricing~~ ~~Inventory buffering strategies to reduce risk~~	~~Design for Supply Chain~~ ~~Partners contribute to risk reduction in design phase~~ ~~DFSC~~, DFSC, design re-use, common BOMS, or manufacturing postponement ~~Continuos collaborative risk management in planning~~ Inventory buffering strategies to reduce risk	Reduce risk for both trading partners – avoid merely pushing it back in the supply chain Operating agreements that focus on processes and ~~execution~~continuous improvement in addition to performance

Proactive risk reduction techniques supersede risk limiting techniques

Paul Fox: 5. Risk & Contract Management

Paul Fox — Fri, 21 Apr 2006 21:48:12 +0000

~~Most of this is about inventory risk. Need to discuss the other forms of risk identified in our definition on the dimension.~~

Level 1	Level 2	Level 3	Level 4
~~Limited Management~~	Unilateral Limitation	Single Node Limitation	Designed-in Mitigation	Shared Mitigation
~~Risks may not be explicitly identified. Risk amnagement confined to price~~ Price and ~~delivery, e.g. fixed price contracts.~~	~~Risks recognized, but react unilaterally potentially leading to unintended consequences.~~ delivery	Push inventory to suppliers (VMI) or customers (consigned) ~~– Not sure if~~ ~~VMI~~ ~~is unilateral if done well?~~ Ts&Cs to explicitly state inventory ~~liability – perhaps?~~ liability	DFSC, design re-use, common BOMS, or manufacturing postponement Inventory buffering strategies to reduce risk	Reduce risk for both trading partners – avoid merely pushing it back in the supply chain Operating agreements that focus on processes and continuous improvement in addition to performance

Proactive risk reduction techniques supersede risk limiting techniques