They are working together in a matrix-oriented way, for example with a risk management council with representatives
from the different units. The roles of the main functions involved are:
.
corporate risk management has the overall responsibility for risk management in
the Ericsson group and has contact with the insurance companies and co-ordinates
risk management activities in the whole group, also developing directives;
.
core unit supply (CSUP) is responsible for the operative work and daily interface
with suppliers;
.
system business area (SBA) has the business perspective and owns the product;
and
.
core unit sourcing is responsible for the commercial interfaces with the supplier
and is therefore involved in evaluation of suppliers and when incidents occur.
A matrix approach is taken (Figure 5) on a more operational level within the
SCM/logistics function (CSUP), as well. A supply chain risk manager, placed within
core unit supply, is responsible for development and implementation of SCRM. He is
working closely together with corporate risk management, as well as with the “line
people” (supply chain managers), responsible for different supply chains and hence
also for the supply chains risks. Supply chain managers are also part of CSUP, but
interfacing the SBAs. Supply chain managers should use the tools and processes
developed by the SCR manager to analyze, assess and manage risk in their supply
chains. In this work purchasers are involved in the assessments of and contacts with
suppliers. The roles of the operational people involved in SCRM are:
.
Supply chain risk manager (SCR manager) at core unit supply runs and
coordinates the work to maintain an optimal balance between risk exposures and
costs for damages versus protection activities.
.
Supply chain managers (SCM) within CSUP are the interface to SBAs and have
full responsibility for the respective SBA’s supply chain. They are responsible
for risk management as regards securing the reliability of supply chains and
their ability to deliver.
.
Core production: supports SCM with risk management issues.
Figure 4.
Organization of risk
management on a
corporate level
Ericsson’s
proactive
approach
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