Competitive advantage is achievable through

integrated Supply Chain Management

The need for companies to meet best practice in the management of supply chain risk has never been more important, or challenging, as they face potential economic downturn, increasing regulation and ever more complex supply chains that make it difficult to understand risk aggregation. But as companies strive to reduce costs this could provide counter pressures that make the management of supply chain risk more difficult. This was the conclusion of a workshop looking at best practices organised by Jardine Lloyd Thompson (JLT) at the Supply Chain Risk Management Summit 2008 (SCRM 2008).

The workshop, attended by in excess of 30 Supply Chain Managers from some of the world's leading corporations, discussed a new integrated service from JLT that brings together four key supply chain risk components:

• SCAIR^TM (Supply Chain Analysis of Interruption Risk) - a specialist, yet simple software tool, available with or without risk consulting services which facilitates a structured approach to understanding and evaluating supply chain risks.
• Business Continuity Management - an efficient risk consulting service to assist your company in implementing a robust and tested programme for responding to business disruption. Delivers an effective approach that focuses in on the value drivers of your business to protect the stakeholders of your organization.
• Contractual Risk Management - specialist legal guidance on best practices in the allocation of risk and responsibility in third party contracts. Ensures that contract negotiations are undertaken with a proper understanding of the risk issues.
• Non-Damage Business Interruption Insurance - a unique insurance product designed to complement traditional business interruption protection. Provides coverage for those areas where significant claims have been experienced, but for which insurance has up until now been unavailable.

Tim Cracknell, Partner, JLT says, "the knowledge and skills of the delegates was impressive and we were able to share many good practices. Many companies manage the different aspects of supply chain risks in separate, often disparate, ways. A more integrated approach would provide higher levels of return of supply chain risk investment by improving effectiveness of asset allocation, thereby reducing risk and enhancing collaboration and understanding throughout the supply chain.

"One example is the developing awareness of the limitations of traditional business interruption insurance which does not cover many of the new, emerging risks that have risen to the top of many risk managers' agendas. This has been a stimulus for JLT developing a new Non Damage Business Interruption insurance policy".

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Enquiries:

Isabella Young
Jardine Lloyd Thompson Group plc
Tel: 020 7528 4444
Email

Jon Screech
Jardine Lloyd Thompson Limited
Tel:- 020 7558 3316
Email

Jardine Lloyd Thompson Group plc
The Jardine Lloyd Thompson group is a leading risk management adviser and insurance and reinsurance broker, as well as a major provider of employee benefit administration services and related consultancy advice. Jardine Lloyd Thompson Group plc is the largest European-headquartered company providing these services and is one of the largest firms of its type in the world.

JLT's approach to Supply Chain Risk Management provides detailed understanding of the exposures in organisations' supply chains to help them secure organisational resilience and appropriate insurance cover using SCIMITAR^TM - Supply Chains: an Integrated Model for the Identification, Treatment and Acceptance of Risk.

SCIMITAR^TM is an innovative, integrated approach to supply chain risk assessment. It offers a flexible, modular methodology to bridge the current gap between enterprise risk management and risk management at an individual product or site level.

SCIMITAR^TM supports the identification, assessment and evaluation of supply chain risk. Then, because it delivers practical and measurable results, SCIMITAR^TM facilitates the mitigation, financing and acceptance of supply chain risk at the highest level. SCIMITAR^TM quickly and economically protects both your company's earnings and, essentially, reputation.

SCAIR^TM is a software system which JLT distribute under licence from InterSys Limited. This specialist yet simple system allows you to analyse your portfolio of supply chain risk for a variety of interruption triggers on a product by product or a product group basis. The outputs from SCAIR^TM will enable the user to quantify the accumulated financial impact of critical supply point failures across a portfolio, thus allowing the user to prioritise risk management action to the links in the supply chain that could hit the financial results hardest.

http://www.jltgroup.com/supply-chain-management