 We'll start this webinar in a minute or so, just waiting for everyone to get here. All right, let's go ahead. Welcome to our last in our series of Expert Connects and topic, the Digital Supply Chain Explained. We hope you've enjoyed the series so far. My name is Ira Sager. I'm Vice President of Learning Initiatives for the Center for Global Enterprise. We tried something new with this series, 15-minute webinars over the last five weeks sharing key management skills for successful supply chain transformations. We hope you've enjoyed it and we think of this as espresso for the mind, short but sessions but packed with lots of information. Each session and this one as well, which will be on the topic of risk and competitive advantage. Vivek Galani, Manager of Research Programs and Analytics for Digital Supply Chain Institute, which is also an affiliate of CGE as will lead this session as he had all the other sessions. We hope after this session, after he's presented his slides, we have an opportunity for Q&A. If you have a question for Vivek, please use the Q&A function on Zoom to post a question and if we don't have time at the end of the session, we'll respond by email. Thank you and I'll turn it over to Vivek now. Thank you, Aira, for introduction. So welcome back, everyone. Today's session will talk about the digital supply chain's risk and how you can turn that into a competitive advantage. So those of you who are new are joining for the first time today. Over the last four weeks, we talked about digital supply chain. So at the Digital Supply Chain Institute, we defined digital supply chain as a customer-centric platform. And with the help of 26 supply chain executives, we divided digital supply chain into four areas, demand, people, technology and risk. So over the last three weeks, we talked about demand, people, and technology. And we'll jump into how companies should manage risk and what needs to be done in terms of turning that into a competitive advantage. I'll give you two examples of companies that are doing that right now. So first, let me get back to a basic process of understanding the risk management. I think it divides into three steps, identify, assess and manage. So I think all the supply chain leaders, and if you are studying in supply chain right now, I can use, you should think about for any kind of process within the supply chain or a company that you will work for. What are the risks you will face in a function or as in a company? And then you should assess what are the probability of that happening and what are the negative impact in terms of loss of revenue or loss of a customer. So you need to assess that. And once you assess it, I think the next step in the process is to manage it and put in controls in place to make sure that doesn't happen again. And if it happened, it has a lower impact on your business. And to give you a quick example on this one, and this may be probably an old example, but a VP gas oil leak, right? That was a really bad disaster rose to the VP, but the probability of that happening was really low. But if you compare it to the compared probability of hitting anyone by life twice, it was higher than oil leak was happening. And then, but then because that happened, I think they changed their whole research assessment to make sure that doesn't happen again. So I think every company needs to make sure they understand the current risk, future risk, and make sure to put in controls to manage those. So I did a little supply density when we started four years ago. I think every traditional supply chain has always been focused on compliance and regulatory risk. But at ASA, we introduced a business performance risk because when you talk about digital supply chain, it's all about connecting your customer learning from a customer, getting visibility from end-to-end supply chain. So if you do that, there are always a risk in terms of on-time delivery because if you don't deliver you, your revenue goes lower, you lose a customer. Business continuity. So if you look at business continuity, pandemic, natural disaster, I think those are all now more important than ever in terms of how companies need to think that right now. And I think there are so many companies lagging in that terms and supply and demand matching right now. Companies can't get the materials that they need right now because they don't have visibility into the suppliers. So that is one of the risks. And we'll talk more about supplier collaboration that is needed right now. And how you can turn that into competitive advantage. For product security, we are working with one of our DSM members and I'll give you an example of how they are thinking to turn product security into a competitive advantage. So for compliance and regulatory risk, and labor environment and health and safety is more important now than ever, right? In China, if you look at labor compliance is more important right now, health and safety of any usually many organizations right now is more than happy. More companies are now trying to do testing at the job location right now as most of the organization are opening, I'm going back to the offices. If you look at human trafficking, conflict of minerals and corruption, it's always a risk when you try to do a global supply chain. So definitely I think companies need to think about that. And then we have data privacy IP and cybersecurity. So cybersecurity is an overall, so when you look at the last three compliance or regulatory issues, cybersecurity is an overall framework, but within that you have data privacy and IP protection. And I'll give you a quick example on cybersecurity and why it is more important now than ever. So if you all remember in I think 2014, there was a hack at Sony. And this is an example from George Bailey, who is our managing executive director and chief research officer. And while he was working and leading the Sony, Sony, there was a hack because the Sony system was so siloed, hackers couldn't get through many systems and couldn't get access to the system. But now as you talked about digital supply chain and always talk about connected system within your company, but also with your supplier and customer and end to end supply chain, I think cybersecurity is more important now than ever. The other thing that I think you need to think about while you manage the cybersecurity is that I know companies always talk about putting more and more firewalls throughout the system and putting redundancy through all the system, but that doesn't help in all the cases. Just because sometimes if you do that, you have 1000 suppliers that you share data with through your SAP system or any other reality systems. And it's just discourage people to share the data because it is so hard for them to get access to because you have so many firewalls in place. So how do you manage those and make sure that while you have a security, you also have a proper access to your supplier to observe supplier proper access to your system. But to do that, I think you also need to train your suppliers and your customers in terms of, there are two, I'll give you two example of hacks that ran through the suppliers or the render partners. For target, I think it was the AC suppliers. So one of their employees got an email and through that email, they got access to the target servers. And for another example, for quest diagnostic, it was the tier two suppliers, they got access to them. So while it is important to keep in touch with your suppliers, it's also important for you to make sure that your suppliers, tier one or tier two or tier three suppliers are on the same level of cybersecurity as you are, but also the employees at those companies are also training to make sure they are following the proper cybersecurity protocols. So next, we did a quick survey of supply chain executives across the world and they asked them what are the top five supply chain risks for them and top supplier performance was really the first one. And while it is the biggest risk for them, it is also a really a competitive advantage. So if you can, while connect your system with suppliers and share data and you can analyze your contracts with them over the five years or any kind of historic data you have on the contract, I think you can really turn that into a competitive advantage by negotiating with them in terms of they are not believing it on time or what is the delivery ratio compared to the pricing that you are offering them. Next is data integration and analysis, matching supply with demand. Nothing supply with demand is right now more important. And I think in demand section, we talk about demand sensing. So not just you are just matching it, but I think sensing the demand and then matching that demand as well is more important now. So let me go to the next slide. So let me give a quick quote from chain IQ is one of the latest members. So from Dr. Darvila, he's CEO at chain IQ and he thinks that compliance and positive brand impact is an opportunity. I think every company should make sure that they are not losing any business because of a potential brand damage. And I think we also talk about brand image in our talent session. I think overall if you really work on a brand image I think it can also help you in terms of gaining new talent, which is also tech savvy and make sure our training to satisfy all they have some kind of training that it also helps you secure your digital supply chain platform going forward. So what does a good supply, what does good look like in this? So at BSA we have put together a risk, maturity assessment and if you go through that assessment if you're using your data to reduce the business performance and compliance risk through predictive analytics, I think that can be a really good maturity level. So at BSA we have three levels of maturity levels and this is the third level of maturity value. Use the data for predictive analysis for specific focus on cybersecurity and data protection. And strategically segment the risk of what to manage and where to gain a competitive advantage. So let me give you a quick example on how to turn risk into opportunity. And the first one is around product security. So one of our, we are at BSA we are working with one of our members who are the logistic company right now. And we are trying to see how and they are losing business because they're dealing through containers and they are losing some of the products and container isn't transit. So we are trying to figure out how we can analyze the container while it leaves a particular shape and then which is another destination how you can analyze, not actually inspect the product itself but from the outside of when the very few can identify a template of the container or not. And what they really want to do is once you identify a overall solution that is in terms of other ERP solution that like SAP or Oracle is providing turning that into a business solution that they can provide to other companies in the area. So I think every company can easily identify a problem that they really want to solve or a problem they have already solved and how to turn that into a competitive advantage. So I think when you join any supply chain definitely make sure that I think there are two things you need to make sure. First is really simple is about identify, assess and manage. This is a simple risk management process but the second is you need to identify what are the risks you want to mitigate but then what are the risks that you can definitely turn into a competitive advantage. So with that I'll hand it back to Ira for NQ&A. Thanks, Uzbek. Just have a quick question. I want to talk a little bit about obviously the pandemic we're in right now and how does that change from your point of view risk assessment and management and what kind of competitive advantages does that provide or how do companies change to leverage whatever competitive advantage they can gain out of a pandemic? So it's a great question and I think it really connects to the supplier collaboration side that we talked about. So I think as most of the companies are really struggling with getting materials from the suppliers because for some companies they have sole suppliers if you call it or just one supplier for a particular product or a part of the product and they are really struggling with that. And then what companies are doing right now is trying to understand if they can have multiple suppliers while not increasing the cost, they're trying different scenarios and make sure that they have a footprint in their supplier network to make sure they always have a product in time. Now what does how competitive advantage take part into that? For example, if you have one supplier in China and one supplier in India and there is some event in India that your suppliers cannot provide then suppliers in China gets activated at the time and then you get the product on time at all. What it does is it helps to gain market share. I can't give you the name but that was one of the ESM member companies that is really trying and they really gained market share. I think it was around 20% just by analyzing the supplier risk that they have and the supply footprint they have and then expanding it and creating redundancy into that supplier. So in terms of if you don't get the supplies from this, these are the next level and they have contracts in place to make sure that they get proper access when they need it. And also, for example, if a particular market doesn't get a particular product in time how you can deliver those products even if it's not your market. So I think having that, analyzing those kinds of risks and opportunities really helps come again in our competitive advantage. Very good. Well, we hope you've enjoyed this series and you can see all the recordings on our YouTube. One will join the others, we'll post this shortly and I want to thank Vivek and our audience. Vivek, I don't know if you want some final words to this. No, I'll just say, so thank you everyone for joining and we are always happy to talk about any of the supply, digital supply chain topics that you are interested of and you are studying or working on right now. So please feel free to reach out to us at any times and we'll be happy to have a talk. Very good. Thank you.