Geopolitics, economics, climate, consumption, regulations... in an increasingly unstable environment, the very model of globalization and globalized supply chains has been called into question for several years.

Companies have realized that the complexity and rigidity of their Supply Chain could represent an existential risk in the event of the failure of a single link. The challenge now is to adapt their strategy in order to regain control in a world of uncertainty, where agility will be decisive!

This 5th edition of the KYU Supply Chain Risk Barometer, carried out in partnership with Arts & Métiers, France Supply Chain and AMRAE, is an opportunity to take the pulse of the Supply Chain, measure the evolution of the risks to which it is exposed, assess the maturity of organizations to face new challenges, identify and share trends and best practices.

Complete the questionnaire and receive a preview of the new editionat the end of January 2024

We thank you in advance for your contribution and remain at your disposal for any questions or problems you may encounter at the following address risksupplychain@kyu.fr

The personal information collected by KYU Associés is processed in a totally anonymous manner, for the sole purpose of producing the results of the survey. The data will be kept by KYU Associés for the time required to produce the survey results, and will then be destroyed.

In accordance with Regulation (EU) 2016/679 on the protection of personal data (RGPD), you have the following rights over your data: right of access, right of rectification, right to erasure (right to be forgotten), right of opposition, right to limit processing, right to portability. You may also define directives concerning the conservation, deletion and communication of your personal data after your death. You may, for reasons relating to your particular situation, object to the processing of data concerning you.

To exercise your rights, please send your request to risksupplychain@kyu.fr. A copy of your identity card may be requested. If you do not-respect of these obligations, you have the right to lodge a complaint with the CNIL.

Risk management is a profession, a set of skills and a state of mind that organizations need to develop. Does this profession already exist in your company? By creating a dedicated community, co-hosted with Renault Group and the consulting firm Wavestone, we hope to help the profession collectively develop its skills, thanks to feedback from the various participants and the methodological insights of our facilitators.

In this article, we look back at the community's first workshop on Supply Chain risk classification and the associated rating methodology .

Enterprise risk management, a prerequisite for speed and resilience

"The Covid-19 crisis and the war in Ukraine were the catalysts for the loss of control over supply chains. They revealed our customers' lack of anticipation and preparation for risk management". Wavestone's testimony on risk management within organizations sheds light on how far we still have to go.

The growing number of crises and the uncertainty that accompanies them have prompted companies to strengthen their crisis management processes. Nevertheless, these efforts are mainly focused on reacting to proven risks, rather than on preventive measures to mitigate exposure to risk and know how to act accordingly.

Supply Chain risk management is part of the company's overall risk management. It involves controlling risk factors, events and circumstances that could compromise the Supply Chain in all its activities.

Supply Chain risk management as part of overall corporate risk management

Implementing a risk management process is becoming a prerequisite for a sustainable business model. It is a response to the challenge of controlling the supply chain, but also to economic issues (control of industry costs), commercial issues (service levels and relations with partners) and issues of national sovereignty (relocation of production and independence of the French model).

Renault Supply Chain challenges:^1st feedback from the community

"The risk of product shortages linked to capacity limits, lack of raw materials and manpower" represents the number 1 risk for organizations in 2023" (Source: KYU,^4th Risk Barometer), which means that companies will need to monitor their supplier relations more closely.

Thierry Blein, SupplyChain governance, performance & risks officer at Groupe Renault, adds that the current context is characterized by an upsurge in risks:

1. Climatic risks , with the example of flooding in Slovenia forcing some automakers to close their sites for a time.
2. Scarcity of raw materials such as copper, demand for which is around 4 times greater than the volume mined.
3. Loss of talent , with a general increase in the number of people leaving the supply chain and a lack of attractiveness of the field, which is struggling to recruit.
4. Operational due to rising transport costs, container shortages and capacity risks.

One principle: Learn to navigate the New Normal

To cope with this new environment, we need to change our corporate philosophy. From now on, we need to take into account the level of risk and resilience of the Supply Chain in our sourcing decisions. The automotive manufacturer also indicates that it is working on the major issues of product standardization to reduce the complexity of its Supply Chain, better capacity management and more reliable forecasting.

Risk mapping and rating methodology: the fundamentals of good risk management

The aim of this first meeting was to present Renault's approach to risk mapping and management. The upstream identification phase is based on a census of the main risks that could hinder the achievement of the organization's objectives. This approach is replicated at the level of each department.

For each element detected, a risk tolerance rating scale is set up and translated into a highly visual mapping.

The Renault risk map

Once the situation has been assessed, success can be summed up in two words: governance and management. The Group has therefore decided to position the Supply Chain function at the highest corporate level (CEO-1). This allows for a more cross-functional approach and a holistic view of risks. The decompartmentalization of data also leads to cross-functional decision-making governance.

In concrete terms, risk management action plans are monitored 2 or 3 times a year by the SCM CODIR, and each department (business line) is responsible for managing the risks associated with its activity, through the appointment of a Risk Owner. For example, the risk of talent attrition is managed by the HR department. Similarly, the "transport capacity" risk is the responsibility of the Logistics Engineering Department.

Upcoming group sessions: climate, technological and cybersecurity risks

Session #2 on 18/10: Supplier relationship management, led by Wavestone, with feedback from Sopra Steria in the aeronautics sector.

Session #3 on 29/11: Technological risk management & Cybersecurity, led by Wavestone

Session #4 - date to be confirmed: Climate risk management, led by Wavestone and France Supply Chain

Communitiesare self-help and experience-sharing groupswhere confidentiality and non-commerciality are paramount. They provide aprivileged forum for exchanges between professionals from all sectors of activity. Since 2023, they have been growing in popularity among our members.

Our aim with this new webinar is to continue educating our members and beyond, logistics and supply chain professionals about the various green fuels. Biomethane in particular is a renewable energy at the crossroads of our country's energy, ecological and economic challenges, enabling us to obtain a renewable fuel called bioGNV. Our guests share their expertise on green gases and answer your questions: where to buy and at what cost? How efficient is it for mobility? Discover the many advantages and prospects of this alternative fuel for decarbonizing our supply chains.

Ambitions: to generate nearly 20% green gas in the French gas mix by 2030 and 100% by 2050

Our speakers :

• Élodie Dupray, Head of the BioNGV/NGV Mobility Division at GRDF
• Rami Hariri, Biomethane Delegate at GRDF

Green gas production methods and their maturity

There are several green or biogenic gases. They are made up of the same chemical molecules as fossil gas, but are produced in a faster, sometimes synthetic cycle. The first method of obtaining biogas is methanization, based on the anaerobic digestion of organic matter.

The different green gas production processes

In France, there are a number of different green gas production processes with varying degrees of maturity. For example, hydrothermal gasification, which uses wet biomass, slurry, sludge or microalgae, will go from R&D to the 1st network injection projects in 2025. Conversely, electrolysis with or without methanation will reach theindustrialization stage over the same timeframe.

Focus on biomethane

Biomethane is already circulating in our networks and is developing strongly thanks to mature technology. In the digester, we recreate the internal conditions of a cow's rumen: heat and agitation. The gases released by the decomposing organic matter are collected with virtually no loss of yield. The special feature of methanization is that it produces 2 products:

• biomethane ;
• digestate, which can be used as fertilizer instead of chemical fertilizer by farmers.

Methanization production capacity has grown exponentially in France thanks to a new regulatory framework. The distribution of production sites (mainly in Brittany and the north of France) highlights its links with the agricultural world and the agri-food industry.

How can biogas help us meet our Fit For 55 targets?

Studies show that our gas consumption will continue to fall as a result of behavioral changes (sobriety) and efficiency improvements (processes, technology, buildings). At the same time, French green gas production will grow to cover our total gas needs by 2050.

Renewable energy for mobility

Some territories already have 20% of green gas molecules in their network, while others have only 3%. It is therefore essential to bring usage and production closer together, in order to meet demand and enable people throughout France to run on biomethane fuel.

Based on a lifecycle analysis, a truck running on bioNGV reduces its GHG emissions by 80% (ADEME carbon base).

90% of goods flows can be carried out using BioGNV, thanks to its long range (up to 700 km, equivalent to a driver's tour) and its wide range of vehicles: heavy vehicles (goods, waste and passenger transport) as well as industrial trucks.

Vehicle ranges suitable for BioNGV/GNV

Inputs already widely available

The organic matter used to generate bioNGV does not compete with the needs of biofuel production, for example. Furthermore, the use of inputs and the need for agricultural land are highly controlled and limited. More than 90% of needs are covered by livestock effluents, intercrops that do not use biomass, and waste from the agrifood industry.

How to run on biomethane, and at what price?

There is indeed an additional cost to purchasing a CNG vehicle, but this is offset by :

• a more accessible fuel ;
• regional or local aid ;
• free vehicle registration (or half price);
• bonus depreciation.

To answer this question fully, several factors need to be taken into account, including how production is financed and legislative incentives. Tools have been developed to calculate the TCO and compare the cost of a biogas vehicle with other energies (electric, bio-fuel or diesel).

To find out more about the challenges of biogas (grid flexibility, connection, etc.), its cost and its impact on your decarbonization strategy, we invite you to watch the replay. This members-only video features a timeline so you can view only the parts that interest you.

To remember

It is estimated that biomethane provides a partial response to 3 major challenges:

1. decarbonizing our energy ;
2. decarbonizing our agriculture;
3. waste management.

TO view the replay and discover the answers to the questions asked during this webinar

In this 30-minute replay, find out how Michelin successfully deployed AI in its Supply Chain for 15 stores in Europe and 4,000 different products. Focus on machine learning for long-term, item-level production and supply forecasting.

Dive into the heart of an Innovation@SCALE meeting

The Digital and Technologies Lab has set up a working group called Innovation@SCALE. This team is made up of members in charge of driving innovation in the Supply Chain in their companies. Every 6 weeks, for 1 hour, they talk about their successes and failures in scaling up.

To better understand what it means to share experiences in industrializing scale-up, we decided to film an extract (half) of the last meeting and give you access to it via a replay with timeline. Today, the site is a forum for exchanging use cases for inspiration and improvement.

One-click access to the desired chapter

Since its creation in February 2023, Renault, Deret, Geopost and Michelin have presented their innovation governance, i.e. how they steer the large-scale deployment of their projects, but also the more forward-looking part of innovation.

Understanding why and how Michelin deploys AI for its Supply Chain.

The presentation begins with a definition of the department's activities by Pierre Cordina, Supply Chain/IA leader at Michelin and today's speaker. This department works on Artificial Intelligence, Business Intelligence (BI) and advanced analysis reports, even proposing solutions to humans.

Michelin deploys Artificial Intelligence (AI) at various stages of its Supply Chain so that machines can make autonomous decisions for people. In this video, we focus on machine learning to forecast tire production and supply requirements.

Forecast error reduced by 5-10%, equivalent to 1-2 days' inventory

AI results (scope - passenger car tires in Europe)

As of 2019, this so-called tacticalforecasting solution provides long-term monthly forecasts for factory staff. It helps determine the quantity of tires to be produced (for countries with a factory) or imported (for countries without).

The D@ril platform, a key factor in the success of the project's international deployment

Encouraged by the success of an initial machine (s@@m) that detects stock outs in the network, and suggests and corrects situations, Michelin's teams applied the same 6-step approach to scale up the forecast solution:

1. Collecting data
2. Data cleansing
3. Teaching the past to the machine
4. Shaping the machine
5. Testing the machine
6. Predicting the future

Phase 5 is a double runi.e. the machine is tested, while human predictions continue in parallel. This is done in order to compare conclusions, but above all to facilitate adoption by operators. In fact, on the basis of tests on a growing number of items and good results observed by the teams, confidence in the solution is built up.

The D@RIL AI forecasting solution today

Today, a machine is always coupled with a forecast manager, i.e. an operative. They are very well received throughout the world, thanks to better results than either the human or the machine alone. It has been observed that, for a particular type of product, the team member has additional and decisive information that improves the machine's balance sheet.

If you'd like to find out more about how the solution works and how Michelin is scaling up its innovation, you have 2 options: watch the members-only replay or ask us your questions. And if you're involved in innovation in your company, you can join the group by contacting us by e-mail.

Key success factors

1. The mistake not to make: don't choose AI subjects for which you don't know how to exploit the results in the field.
2. Team: its members, autonomy and ability to interact with the business
3. The 6-step methodology
4. The D@ril platform
5. A gradual, locally-driven ramp-up

TO view the replay and discover the answers to the questions asked during this webinar

On September 21, to mark the start of the new school year, we organized a new webinar to present our activities to our new members and perhaps, who knows, a few future ones. It was an opportunity to recall who we are, how we operate and, above all, our raison d'être.

One-click access to the desired video chapter

For all those who couldn't join us live (September is intense for many of us), we've decided to give free access to the replay of the event. The video features a timeline, so you can view only the passages that interest you.

This session also enabled us to unveil some new community initiatives. Starting with the young people's initiative, embodied by Rodrigue Branchet-Fauvet, an SCM student at KEDGE ISLI and PMO of Lab Jeunes.

Another important focus was the presentation of the #community by Marie-Laure Furgala, Director of the ISLI MS/MSC in Global Supply Chain at KEDGE BUSINESS SCHOOL. What is the aim of this sphere of exchange? What do we talk about? A concrete example of the benefits for members who have joined a community.

France Supply Chain offers many advantages, including a new resource bank. This private platform brings together all our Labs and Communities productions, including over 60 subtitled replays of our webinars and 200 publications, as well as best-practice fact sheets, job descriptions and podcasts. To access it, we've prepared a quick video tutorial, which you can discover in the " Focus on Member Benefits" section of the replay.

Finally, the Labs leaders take turns presenting their latest news and productions in sequences lasting just 10 to 15 minutes :

To find out more :

• participate in the Digital Supply Chain use case survey
• complete the online questionnaire to evaluate your Supply Chain
• Follow the Lab Jeunes Instagram account

For the^2nd time, the community of women in Supply Chain tackled the enormous challenge of making our professions more visible to their female counterparts. Its second objective with this Webinar was to boost their self-confidence, so that more women would move into management positions and take on responsibility. We're convinced that by introducing them to role models such as Laetitia, Latifa, Stéphanie and Annie (see Episode¹ ), more and more women will choose Supply and take over the reins.

The principle remains the same: 1 hour of frank, straightforward discussion, organized around questions in a choice of 4 categories:

As our guest Laetitia so aptly and modestly put it:

Marie-Laure Furgala, Director of the ISLI MS/MSC in Global Supply Chain at KEDGE BUSINESS SCHOOL, and FSC administrator in charge of the women's community, put her questions to our 2 new guests: Laetitia Balac-Ruscher, Supply Chain and Logistics Director/Member of the Comex of Groupe Monoprix and Latifa Gahbiche, General Manager SULO France & Switzerland, discover here a glimpse of their answers.

How did they come to Supply Chain?

As we're always saying, the supply chain professions are varied and open up a wealth of career opportunities. The range of possibilities is enormous, as demonstrated by the surprising career paths of our 2 interviewees.

In the replay of the event, you'll discover that it's just as easy to come from a background in finance, and more specifically in management control, as it is to come from a background in commerce, with a background in both marketing and mathematics with its constrained optimization algorithms.

The keys to a successful career today and tomorrow

Determination and perseverance are a leitmotiv. Never give up. On the other hand, as our businesses and activities evolve, so does our ability to analyze systemically and analytically, and to demonstrate finesse.

But these are not the only ingredients in their recipe for success. To find out all about it, dive into the replay!

"I think we women have a bit of a glass ceiling. We think we have to do a lot, 10 times more to be recognized. [...] Instead of 150%, maybe just 120% would have been enough".

Latifa Gahbiche

Family, well-being and career? How do they do it?

Advice on work/life balance was particularly eagerly awaited, and organization remains the keystone. But that's not all! The question-and-answer session showed thatself-knowledge and self-acceptance are essential to creating a harmonious life, but also to setting an example for your team.

The "pause button" has made a comeback, and we've put our finger on some inspiring personal techniques to apply to our daily lives. Schedule these rejuvenating moments in your diary, because they're just as important as your meetings. They're not an option! Your well-being is sacred.

What about mentoring?

At different stages of their careers, Laetitia and Latifa have been able to call on coaches or rely on networks of women within the company, but also externally to avoid any conflict of interest. They were able to count on mentors to shake them up and challenge them, as well as on figures who inspired them.

The benefits of mentoring are manifold, both for the mentee and for the (more experienced) mentor, as well as for the organization in which it takes place. For example:

• For the mentee: accelerated professional development, help with career orientation, networking, self-confidence and support in the face of professional challenges.
• For the mentor: rewarding experience, enhanced leadership skills.
• For the organization: talent retention and development, transmission of corporate values and culture, better integration, improved performance.

Dealing with inappropriate behavior at work

On this subject, our 2 speakers, like their predecessors, are categorical: by reporting such behavior and taking appropriate action, you are helping to create a healthy and respectful working environment for yourself and your colleagues.

Communicate clearly, speaking directly to the person responsible for the inappropriate behavior if you feel safe to do so. Express your discomfort respectfully, using "I" phrases to avoid sounding accusatory.

If direct communication doesn't solve the problem, or if you're not comfortable addressing it, use internal communication channels. Report the behavior to your supervisor, human resources department or designated manager. Follow the company's internal procedures for reporting such problems.

This article only touches on some of the many fascinating topics covered during the webinar. If you'd like to go further and discover their mottos and recommendations, we've made a replay available to our members. This video features a timeline so you can jump straight to the part that interests you.

Ladies, thank you for your trust, your time and your frank testimonials, and thank you to Marie-Laure, our ambassador and host, for creating an environment conducive to confidence.

See you soon for a^3rd episode 😉

To discover the^1st replay and its drawn summary

Find out more about the community

TO view the replay and discover the answers to the questions asked during this webinar