Monczka Case Study $7$ Email Exercise Risk Analysis Spreadsheet.xlsx BELOW AVERAGE RISK AVERAGE RISK ABOVE AVERAGE RiSK

Supplier Relationship $12345$

How much business do you give this supplier, and what percentage is your company of their total annual revenue?

How profitable are you vis$--$vis their other customers?

How much business does the supplier believe you will grow with them in the next five years?

How cooperative and trustworthy are you as a customer based on your history with this supplier?

How much data do you share with this supplier on forecasts, business requirements, etc?

Average Score #DIV$/0!$

BELOW AVERAGE RISK AVERAGE RISK ABOVE AVERAGE RiSK

Information Sharing $12345$

How much information is shared by the supplier on changes in product costs, including the supplier's labor and$/$or material cost inputs?

How much information is shared by the buyer on material planning, production schedule, and inventory status?

How often is information on the supplier's supply base shared with the customer?

How often is regularly required administrative information on EPA violations, proof of insurance, financial ratios, etc. shared with the customer by the supplier?

How much information on upcoming order fulfillment requirements, order changes, expedited requirements, forecasts, etc. is shared with the supplier by the buyer?

Average Score #DIV$/0!$

Once a year Once every other year Once every $3$ years

BELOW AVERAGE RISK AVERAGE RISK ABOVE AVERAGE RiSK

Performance $12345$

The supplier has had a serious quality problem.

The supplier has had a serious delivery problem.

The supplier's tier $2$ supplier has stopped production.

The supplier has had a serious service or engineering support problem.

The supplier has been shut down by the EPA, FDA, OCEA, or other regulatory agency.

The supplier has expanded too quickly and does not have capacity for production.

Average Score #DIV$/0!$

BELOW AVERAGE RISK AVERAGE RISK ABOVE AVERAGE RiSK

Human Resource Risks $12345$

The supplier has a high level of turnover among its employees.

The supplier has had a recent turnover of its major leadership team, and is under new management.

Pay rates for employees at this supplier are below the average wage rates.

There are serious grievances that have been filed by employee representatives against the management team.

The supplier has a strong and active union.

Average Score #DIV$/0!$

BELOW AVERAGE RISK AVERAGE RISK ABOVE AVERAGE RiSK

Supply Disruption Risks $12345$

The supplier is subject to major changes in the cost of their raw materials in the market.

There is a high probability this supplier may have a raw material shortage resulting in a supply disruption.

This supplier has a single source, and is entirely dependent on this source for a major raw material or service.

There is a high probability this supplier may experience a quality problem resulting in a supply disruption.

There is a high probability this supplier may experience a capacity problem resulting in a supply disruption.

There is a high probability that this supplier may experience a disaster$-$related or other force majeure disruption.

There is a high probability this supplier may experience a shut$-$down due to a government agency regulation.

This supplier is in a geographic region that is highly unstable and may result in a supply disruption.

This supplier does NOT have a good Risk Reduction and Business Continuity Plan.

Average Score #DIV$/0!$

BELOW AVERAGE RISK AVERAGE RISK ABOVE AVERAGE RiSK

Financial Risk $12345$

The supplier's business rate of growth is sustainable $($not growing too fast, nor shrinking too quickly$).$

The supplier's overall financial performance and risk compared to competitors.

The supplier's overall level of customer satisfaction in the industry.

The supplier's level of profitability compared to the industry.

The supplier's accounts receivable are at a reasonable level compared to the industry $($e$.$g$.$ less than $60$ days$).$

The supplier's account payables are at a reasonable level compared to the industry $($e$.$g$.$ less than $60$ days$).$

The supplier's level of debt is at a level that is considered reasonable in the industry.

Average Score #DIV$/0!$