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Sunil Kumar Kohli, Joint Secretary & Financial Adviser, National Disaster Management Authority (NDMA), & National Disaster Response Force (NDRF), Ministry of Home Affairs, New Delhi, India

Sunil Kumar Kohli, Joint Secretary & Financial Adviser, National Disaster Management Authority (NDMA), & National Disaster Response Force (NDRF), Ministry of Home Affairs, New Delhi, India
SPECIAL ADDRESS: Examining the role supply chain best practices can play in disaster management

My talk at Our 2nd Annual LogiChem Asia 2011 conference was held on 18th, 19th and 20th May in Singapore.
This year there were 120 delegates and over 65 attendees from chemical manufacturers.
http://www.wbresearch.com/logichemasia/Presentations.aspx

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“Examining The Role  Supply Chain Best Practices  Can Play In Disaster Management” “Examining The Role Supply Chain Best Practices Can Play In Disaster Management” Presentation Transcript

  • 1FELICITATIONS FROM LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 2“Examining The RoleSupply Chain Best PracticesCan Play InDisaster Management”bySunil KOHLI, IDAS ndcIndian Defence Accounts ServiceJoint Secretary and Financial Adviser,National Disaster Management Authority(NDMA) andNational Disaster Response Force (NDRF) LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 3“Supply Chain Issues In Disaster Management”:Key Issues1. Security And Safety In Chemical Supply Chain.2. Designing A Proactive Disaster Management Framework3. Leveraging Knowledge Of Disaster Management To Prepare Your Chemical Supply Chain.4. Integrating It With Supply Chain For A Better Response.5. Developing A Collaborative Approach With Stakeholders6. The Critical Role Of Supply Chain In Managing Disasters.7. Logistics Is A Key Professional Element In Successful Disaster Management8. Using Information And Technologies To Speedup Response And Decision Making. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 4Precap• Key Issues in the context of INDIA’s National Disaster Management Framework• Key Challenges• Way Ahead• Q&A LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 5Key Issues1. Security And Safety In Chemical Supply Chain.2. Designing A Proactive Disaster Management Framework LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 6Prevention is better……..• Security and safety always come first in any chemical Industry.• What preparation needs to be carried out to handle disasters in Chemical Industries?• Vulnerability is increasing because of: – Population density & urbanization – Settlements in hazard prone areas – Poor natural resource management• Disasters are not entirely a humanitarian issue but also an economic issue.• Preparedness and risk reduction programs must be based on good information and valid assessments of hazards - vulnerability and capacities.• Cost Benefit Analysis: Mitigation Vs Response 1$:7$ LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 7INDIA’S INITIATIVES• Setting up of NDMA• Disaster Management Act 2005• Designing A Proactive Disaster Management Framework• Management of Chemical Industrial and Terrorism Emergencies and Issue of National Guidelines on Managing these Chemical Disasters.• SOP for Transportation of Chemical Goods LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 8NATIONAL DISASTERMANAGEMENT AUTHORITY(NDMA) LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 9NDMA: DM ACT 2005• The Disaster Management Act, 2005 brought National Disaster Management Authority (Apex Body) at National level• The Act lays down Institutional and coordination mechanisms at the National, State, District and Local levels and provides for establishment of Disaster Response & Mitigation Funds LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 10 Paradigm Shift in Approach to DM• From the earlier Reactive Approach wherein focus was primarily on response and relief now on to Proactive Approach of prevention, mitigation and preparedness.• National Roadmap for Disaster Management (DM)• Primary objective: Mainstreaming of DM into the Development Process.• Create a Culture and ethos of Preparedness & Prevention across the country LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 11DISASTER MANAGEMENT• Disaster Management means a continuous and integrated process of planning, organizing, coordinating and implementing measures which are necessary or expedient for-• Prevention of danger or threat of any disaster;• Mitigation or reduction of risk of any disaster or its severity or consequences;• Capacity Building;• Preparedness to deal with any disaster;• Prompt response to any threatening disaster situation or disaster;• Assessing the severity or magnitude of effects of any disaster;• Evacuation, rescue and relief;• Rehabilitation and reconstruction; LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 12 DISASTER MANAGEMENT CONTINUUM• The only predictable aspect of disaster is the unpredictability which is so predictable• We are dealing with the unpredictability of this very high probability - we do not know where it is likely to happen and when it is Disaster going to happen and Strikes therefore the need to be prepared.• Preparedness is a shared responsibility LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 13NDMANationalDisasterManagementStructure LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 14DISASTER MANAGEMENT• Address all issues relating to – Governance, Risk Management and Compliance – Prevention, Mitigation, Capacity Building, Preparedness, Response, Assessment of Vulnerability, Mapping, Evacuation, Rescue, Relief, Rehabilitation and Reconstruction.• In a coordinated, collaborative, and Integrated Manner by Leveraging Technology effectively.• Main focus is on mainstreaming DRR into the Development process. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 15Action Plan for Disaster RiskManagement LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 16KEY TERMS• Disaster• When the dimension of an emergency situation grows to such an extent that the impact of the hazard is beyond the coping capability of the local community and/or the concerned local authority.• Disasters are of two types – Natural Disasters (Earthquake, Cyclone, Flood, Landslide, Tsunami, Volcano etc) – Man-made Disasters (CBRN, Terrorist attack, etc)• In emergency Bottom-up approach is followed, while during disaster Top-down approach is followed. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 17 Mainstreaming DRR into the Development Process•Mainstreaming DRR into the DevelopmentProcess essentially means looking critically at eachactivity that is •Being planned, not only from the perspective of that business process activity, •But also From the perspective of embedding DRR attributes into that process so that it addresses the DRR concerns. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 18 Business ProcessDRR LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 19 MAINSTREAMING ………..• DRR strategies and measures are most effective whenintegrated into the framework of overall DevelopmentProcess.• DRR should not be considered as an end in itself whichrequires incorporation into Development Process butrather as an integral component of all DevelopmentProcess in the first place.• Hence, a central theme of mainstreaming is to addressDRR concerns within the Development Process contextand ensure that Development Process, Policies, Projectsand Programmes do not unwittingly create new forms ofvulnerability. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 20Addressing concerns of Security andSafety in Chemical Industry LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 21Genesis of the National DisasterManagement Guidelines• The National Disaster Management Authority has assumed the responsibility of strengthening the existing Chemical emergency management framework by involving all the stakeholders in a holistic approach through a series of mutually interactive, reciprocal and supplementary actions to be taken on the basis of a common thread—the National Guidelines.• Based on these Guidelines, Disaster Management plans will be drawn out by the stakeholders at all levels of administration. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 22Protection Layers For Disaster FreeSociety LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 23Chemical Disaster Management• NDMA concerned about the safety & security of hazardous chemicals.• National Guidelines for prevention, mitigation, capacity development, preparedness & response to chemical industrial as well as chemical terrorism disaster formulated.• Prepared in consultation with more than 200 renowned experts from leading national scientific & technical institutions & apex industrial associations.• Defence Research & Development Organization (DRDO) and National Authority, Chemical Weapons Convention have contributed very significantly. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 24National Guidelines: Chemical Disaster Management• Guidelines focus on safety of industrial installations, storages and transportation of hazardous chemicals by adopting good engineering practice.• Besides, chemical dirty bomb, Terrorists may sabotage chemical plants & petroleum product pipelines.• Emphasized the Need for strict surveillance & safety measures for preventing chemical terrorism. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 25Guidelines: Main Emphasis Security & surveillance measures for chemical installations, and storages. Intelligence regarding movement of chemicals. Preparedness for protection, detection, decontamination & antidotes administration. Infrastructure development & capacity building for prompt & effective emergency response to chemical disaster through rescue & medical response teams. Community awareness about prevention from hazardous chemicals. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 26National Disaster Management GuidelinesSTRENGTHENING OF SAFETY AND SECURITYFOR TRANSPORTATION OF POL TANKERS• LEGAL FRAMEWORK• Constitutional Provisions; Statutory Provisions• Legal Regime – Paradigm Change in approach• Pre Bhopal and Post Bhopal legislations – Explosives Act; Factories Act; The Insecticide Act, 1968: Static & Mobile Pressure Vessels Rules, 1981 • Environment (Protection) Act, 1986 • Manufacture, Storage and Import of Hazardous Chemical Rules, 1989 (amended in 1994, 2000) • Chemical Accidents (Emergency Planning, Preparedness and Response) Rules, 1996 • Motor Vehicles Act, 1988 • Public Liability Insurance Act, 1991 • Environmental Appellate Authority Act 1997 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 27National Disaster Management GuidelinesSTRENGTHENING OF SAFETY AND SECURITYFOR TRANSPORTATION OF POL TANKERS• Key features• Focused on on-site safety of workers• Legal system to regulate – Off-site emergency system – Safe storage of hazardous materials – Safe transportation of hazardous materials LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 28Strengthening of Safety and SecurityRegulations on POL Tankers• Strengthening en-route safety and security.• a) Vendor’s responsibility. `• b) Vehicle fitness and governing regulations• c) Defined route and route map to drivers (to be made mandatory)• d) Training of drivers and cleaners.• e) VTS: Vehicle tracking system and its installation on all POL tankers to be mandatory.• f) Introducing GPS for all POL tankers• g) Safe parking places en-route and resting places for crew.• Safety and security of Destination• a) Need to standardize SOPs for unloading of POL tankers across the country• Transport discipline guideline (TDG) LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 29Strengthening of Safety and SecurityRegulations on POL Tankers• The important recommendations to be implemented include: – Regulatory frame work should address the roles of occupiers, transporters, drivers and district and state authorities explicitly for fail safe transportation of POL tankers; – Response capabilities of hospitals, fire services and police on transportation routes especially in mofusil towns should be strengthened; – More emphasis should be given to maintenance of safety features in POL tankers; – National tanker registry should be developed; – Tracking of POL tankers through GPS and VTS should be compulsorily adopted; LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 30Strengthening of Safety and SecurityRegulations on POL Tankers• The important recommendations to be implemented include: – DDMA should have a cell for transportation of POL Tankers – Separate data base of petroleum products should be created; – Emergency response guide for transportation of POL tankers should be prepared; – Efforts should be made to designate and train community leaders on prominent highways for down the line training of communities enroute and; – Safety documents should be prepared by the occupier/ transporter for vehicle, driver and journey management for pre, during and post transportation phases. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 31Implementation Of Guidelines• Action plans including onsite & offsite plans being prepared to handle any chemical eventuality.• For creating awareness & training of stakeholders, workshops on Safety & Security of Chemicals & Petroleum Products Storages, Ports and Transportation Pipelines, are conducted regularly.• Ten Battalions of National Disaster Response Force are trained and equipped to handle chemical disaster.• NDMA in collaboration with states government, industry and other stakeholders has been carrying out the mock drill to test the plans in various states.• Observers are being appointed, any gap noticed during mock drill are being rectified for further improvement. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 32Response To Chemical Emergency• In case of any chemical eventuality, the first responders will activate the emergency functionaries by sending the alert signals to the fire and emergency services, police, emergency medical services, district authorities and the HAZMAT team.• To ensure prompt & effective response to chemical disaster for rescue & relief Incident Command Post will be established. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 33Key Issues3. Leveraging Knowledge Of Disaster Management To Prepare Your Chemical Supply Chain.4. Integrating It With Supply Chain For A Better Response. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 343.Leveraging Knowledge Of Disaster Management To Prepare Your Chemical Supply Chain• Hazard and Vulnerability Analysis• Preparedness and risk reduction must be based on good information and valid assessments of hazards - vulnerability and capacities.• The impact of Disasters on the supply chain• Questions about Geographically-concentrated & High risk dependencies of supply chains• Mainstreaming DRR into the Business Process LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 353.Leveraging Knowledge Of Disaster Management To Prepare Your Chemical Supply Chain• DURING DISASTERS• Planning for the long term must account for future major events• No longer will the stress test of the supply chain simply evaluate component suppliers, distributors, and other near- or long-term issues associated with quality, capacity, and financial viability.• Instead, companies must look even deeper into the "suppliers of the suppliers" as to where raw components are manufactured, in order to add another level of risk assessment.http://www.ebnonline.com/author.asp?section_id=1096&doc_id=205566 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 364. Integrating It With Supply Chain ForA Better Response• Integrating Disaster Management Framework With Supply Chain For A Better Response• Incident Response System (IRS) Framework• Issue of Guidelines on Incident Response System (IRS) Framework LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 37Disasters offer a unique opportunity tolearn where we have gone wrong…. Preparedness and Mitigation of Disasters is the most important part of Disaster Management while strengthening our response capabilities LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 38Impact of Disasters on Supply Chain• Japan disaster impacts supply chain• The aftermath of Japans earthquake has left the electronics supply chain struggling with production stoppages and shipment delays of electronic components and raw materials supply.• Shin-Etsu is a major wafer silicon supplier to DRAM suppliers Hynix, Elpida and Rexchip.• Hynix’s demand can be met by other plants and suppliers, and both Elpida and Rexchip, which get a large share of supply from the impacted plants, have started to negotiate raw wafer purchases from other vendors. Both have one month of inventory level.• Samsung and Micron will not be impacted by the potential wafer shortage. Samsung has five other raw wafer suppliers in the U.S., Japan and Korea, while Micron’s supply comes primarily from the U.S. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 39Impact of Disasters on Supply Chain• Japan Disasters Severely Disruptive to Supply Chains• Due to the recent disasters in Japan, companies like Toyota, Honda, Chrysler, Sony, Toshiba, and H&M were forced to suspend operations in some of their plants in Japan and other countries. Chrysler cut overtime at plants in Canada and Mexico just to conserve parts. As the world’s third-largest economy, Japan’s suppliers are vital to many supply chains, so the disaster’s impact is felt by industries around the world. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 40Impact of Disasters on Supply Chain• Three key characteristics of supply chain design that impact the severity of a disruption: density, complexity and node criticality.• Supply chain density refers to the geographical spacing of nodes, or suppliers, within a supply chain. A dense supply chain is one with nodes clustered closely together.• A complex supply chain has many nodes and accompanying flows. Companies’ global-sourcing initiatives have made supply chains more complex.• Node criticality describes the importance of a node within the supply chain. A few characteristics of critical nodes are access to scarce resources and heavy product flow, like a seaport. The more unique capabilities a node has, the more critical it is. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 41Impact of Disasters on Supply Chain• “If we look at Japan, we see that all three of these characteristics are present”.• “There are a lot of sources in supply that are in close proximity. They have unique suppliers that are critical to such industries as electronics and automotive and the fact that they are in a global supply chain means more complexity.” LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 42 Impact of Disasters on Supply Chain • How companies bounce back from these disruptions depends on how resilient their supply chains are. • Companies should have flexible processes in place and redundancy in the supply chain to protect themselves from the dangers of node criticality. • “If a company put mechanisms, contingency plans and processes in place and identified alternate sources of supply prior to the disasters, then they may bounce back more quickly”.http://research.smeal.psu.edu/news/japan-disasters-severely-disruptive-to-supply-chains LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 43 The Long Haul: Learning from Disaster Companies Measure the Effects of the Japan Disaster • The widespread effect of this disaster on many industries’ supply chain revealed significant flaws in the general business trend of lean production. • One of the most criticized practice is the “just in time” inventory delivery solution utilized to keep costs down. • Now as manufacturers scramble to find parts in the wake of disaster, this cost saving measure has proven to be a very expensive mistake. • Additionally, many large companies’ habit of utilizing one geographical area to house major industry factories is being pointed out as foolish and risky. These practices were focused on profit and leaner production techniques but made companies vulnerable to supply shocks.http://www.supplychaindigital.com/sectors/the-long-haul-learning-from-disaster LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 44 The Long Haul: Learning from Disaster Companies Measure the Effects of the Japan Disaster • Economists now strongly encourage safety net measures such as ensuring that supplies come from different geographical areas to minimize interruption risk. • Currently electronics suppliers in Taiwan and Southeast Asia are getting hit with a surge of orders due to Japan’s factory shutdowns. Additionally, pressuring companies with monopolies on vital parts to extend production sites to more than one geographic area would help to minimize risk.http://www.supplychaindigital.com/sectors/the-long-haul-learning-from-disaster LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 45Impact of Disasters on Supply Chain• Japan disaster impacts supply chain• Shin-Etsu’s Shirakawa plant, which is responsible for 20 percent of global silicon semiconductor wafer supply decided to set up production systems at other facilities LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 46Lessons from Japan…• Need for investment in a better geographical favoured locations.• Where companies were trying to establish strong long term relationship with suppliers, they must now have a strategy of utilizing multiple suppliers in order to minimize their risk.• Need for a stronger supply chain that is diversified across many geographical areas.• Dual sourcinghttp://www.ebnonline.com/author.asp?section_id=1096&doc_id=205566 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 475. Developing A Collaborative ApproachWith Stakeholders• Why Collaboration Matters?• Supply chain collaboration helps companies innovate and adapt more effectively which make it especially important in a Value of learning as a critical element of collaborative relationships LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 48Optimising Collaboration• Customer-focused businesses need an accurate picture of demand to drive production, inventory, distribution, and buying plans across their operations.• Good collaboration can prepare for possibilities and overcome the challenges.• Building the trust as the first step• Designing a supply chain structure to ensure the smoothly flow of information in your organisation• Gaining accurate and first hand information for demand planning by communicating with your suppliers and customers. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 49The Next Dimension of Collaboration• Exploiting web-based technology to drive the use of collaboration to strategically transform the supply chain.• "Significant efficiencies can be gained by linking the supply chain and removing unnecessary inventory, variation and cost and dramatically reducing cycle times to create an extended enterprise.”• There is a tremendous sharing of information across the entire supply chain.• Theres visibility and access to information• Real time responsiveness and collaboration outside the physical walls of the enterprise are the new areas for value creation.• Whether through new technology or through more established ways of communication and collaboration, the Strategic Partnership Process opens an opportunity to bring new ideas.• Define your business not just as “Supply Chain Management” but as Dynamic Supply Chain Relationship.” LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 506. The Critical Role Of Supply Chain InManaging Disasters.• Relief Logistics:• Humanitarian Logistics in emergency relief is the management of humanitarian emergency relief supplies from source to the beneficiaries efficiently and effectively.• The basic task of a logistics system is to deliver the appropriate supplies, in good condition, in the quantities required, and at the places and time they are needed.• Although mostly concerned with the movement of goods and equipment, relief logistics also encompass the relocation of disaster-affected people, transfer of casualties, and the movement of relief workers.• UN OCHA…• NDMA “National Disaster Resource Network”… LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 51 6. The Critical Role Of Supply Chain In Managing Disasters. • Supply Chain Issues in Disaster-Management • The key issues existing in the current supply chain initiatives for disaster management can be summarized as follows: – Lack of planning leading to supply chain break downs – Setup of new supply chain for each disaster – Limited short-term supply of relief through the make- shift supply chain – Inefficiencies due to insufficient and inaccurate information – Focus on donors rather than recipientshttp://www.coolavenues.com/know/ops/madhuker-varun-supply-14.php LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 52 Supply Chain Issues in Disaster Management • A supply chain, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. • Customers in this case are people facing the crisis. They formed the focus of the entire supply chain development. • Underlying principles behind the whole supply chain is centralized control and decentralized execution.http://www.coolavenues.com/know/ops/anusha-supply-14.phpLOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 53 Supply Chain Issues in Disaster Management • COMPONENTS OF RELIEF CHAIN • 1. Planning & Preparedness: During Pre-disaster, proper planning and preparedness for logistical procedures and activities must be done. • 2. Assessment: Assessment comprises of activities like, preparedness planning, survey and data collection, interpretation and forecasting, reporting and monitoring. • 3. Resource Mobilization: Human and financial resources need to be mobilized by various humanitarian organizations. • 4. Procurement: Procurement which is emergency supplies can be done locally or globally and can be acquired in different ways such as in bulk or stored at the vendor until needed. • 5. Transport: Transportation involves shipment, logistics, transport, etc., through which the goods are brought into a country at an entry point and then moved to collection sites run by relief organizations.http://www.coolavenues.com/know/ops/anusha-supply-14.phpLOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 54 Supply Chain Issues in Disaster Management • COMPONENTS OF RELIEF CHAIN • 6. Tracking & Tracing: It means keeping track of what has been ordered, promised, things on its way and already arrived, etc. • 7. Stock Asset Management: The stock should be inspected and accounted, and if there is any flaw should be sent back. • 8. Extended Point of Delivery & Relief to Beneficiaries: An extended delivery point is an inland destination close to the affected area where goods can be staged before the final distribution of relief to beneficiaries. Finally, distribution should be carried out in proportion to the requirement and all the affected gets there share. • 9. Monitoring, Evaluation & Reporting: During implementation, monitoring and evaluation create the information base for decision making. It is also used to formulate conclusions and recommendations for the supply chain. • 10. Communication & Collaboration: In disaster, setting communication is quite a difficult task, but quite helpful. Between different agencies working for relief should have proper cooperation.http://www.coolavenues.com/know/ops/anusha-supply-14.phpLOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 556. The Critical Role Of Supply Chain InManaging Disasters.• Identification of Existing Critical Resources• Establishing Critical Reserves• Virtual Inventory Through Contractual Agreements: Reduces physical inventory while maintaining quality and speed of delivery.• Ten Battalions of NDRF would collect inventory based on the contractual agreements (for food, medicines, clothes etc).These units are at the focal points across the geography and based on Mapping of potential risks in the geography.• A country like India has threats of: – Earthquakes In The North, NE & West; – Landslides In The North & NE; – Floods In The East And – Tsunami In The South.• Vendors Managed Inventory (VMI)• Using Existing inventories of Stakeholders LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 56 Supply Chain Issues in Disaster Management: • Implications • This arrangement forms a backbone supply chain that ensures speed, quality and continuity of relief material to the disaster affected area. • The mainstream operations remain the same irrespective of the nature of disaster. • Only the relief operations at the site of the disaster vary with respect to the natural calamity. • Hence, on repeated setups and functioning of this supply chain, it is easy to increase the efficiency of such processes.http://www.coolavenues.com/know/ops/madhuker-varun-supply-14.php LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 577. Logistics is a key professional elementin successful disaster management• Adopt SCM / Logistics Best Practices• Time is critical element• Cut Administrative and Procurement Lead Time• Overcome Disruption of Supply Chain – Redundancy – Multiple Sources – Indegenisation LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 58 Supply Chain Issues in Disaster Management • An agile supply chain in such a scenario minimizes time for procurement and delivery of essential supplies. It helps bringing the situation under control by quick response for relief measures. Supplies of food, medicines and clothes need to reach the affected people in minimum time. Simultaneously the quality and speed of information flow must also be of acceptable standards.http://www.coolavenues.com/know/ops/madhuker-varun-supply-14.php LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 59Do we really need to study disastersupply chains?• The timely delivery of critical goods has always been a crucial element of an effective disaster response, but an effective disaster supply chain is hard to create and maintain.• Disaster and crisis pose the special challenges.• “Disaster Barriers”—the political-administrative factors that make it hard to organize an effective response.• The most pertinent challenges: the coordination of actors in providing humanitarian relief.• What can be learned from general supply chain coordination mechanisms in order to enhance the coordinative capacity of disaster supply chains? LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 608. Using information and technologies tospeed-up response and decision making• National Resources Networks – India Disaster Resource Network (IDRN) – Corporate Disaster Resource Network (CDNR) – India Disaster Knowledge Network (IDKN) – Response Net• Adopting GIS Technologies LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 61INDIA DISASTER RESOURCENETWORK (IDRN) LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 62 CORPORATE DISASTER RESPONSE NETWORKhttp://www.cdrn.org.in/ LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 63CORPORATE DISASTERRESPONSE NETWORK• Corporate Disaster Resource Network (CDRN) is a web based supply chain management system that helps Relief agencies, Response agencies and Local governments access and feed in real time information on products and services required for emergency humanitarian relief.• http://www.cdrn.org.in/ LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 64INDIA DISASTER RESOURCENETWORK (IDKN) LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 65RESPONSE NET LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 66Key issues• Evolving an Efficient Supply Chain for Preparedness, Relief & Rehabilitation:• Strategies to involve Industry, Government, Developmental Agencies and Civil Societies in a coordinated way to meet relief and rehabilitation challenges.• Transportation and Coordination challenges and ways to bridge them.• How to ensure the availability of resources and securing the continuity of the supply. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 67KEY ISSUES• Mainstreaming of Disaster Management into the Development Process.• Mainstreaming the Paradigm Shift of Mindset.• “Its just not in our culture to be prepared• “Theres a gap between policy and practice. India lacks the rigorous assessment procedures.• Three Crop seasons…& Relief• Empowerment of citizens with INFORMATION. (RTI Act)• Capacity Building, Sensitization of People, Mock Drills, Gap Analysis, Standardization, Guidelines, SOPs and Legislation.• Overcome Fatalistic Attitude. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 68Key Challenges• The cultural change is by far the biggest challenge.• Adoption of a common risk understanding, language and methodology.• Top management must prioritize risk and governance, and integrate it into the company strategy and objectives• Market Dynamics Necessitated Changes• Attitudes Towards SCM Changed• Leveraging Human Resources (People Development) a Critical Element When optimizing for the whole, you sometimes are not going to be as efficient in the parts. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 69Key Challenges• Breaking Corporate Inertia• Instilling an environment where all parts of the organisation are risk-confident.• Being creative about how to communicate about the framework is important, and the communication has to be continual and changing.• Continue to adapt, learn and be proactive. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 70Key Challenges• Overcoming “DRIP” Syndrome (Data Rich Information Poor) for real time insight analysis.• Adoption of “C3I2” approach for better Accountability. – Coordination; – Communication; – Collaboration; – Integration ; and – Implementation• Make it a Nature to be Natural with Nature.• Every Second count: Every Life matters. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 71THE WAY AHEAD• Robust Planning. “Failing to Plan is Planning to fail.• Transparent and Rigorous Systems and Procedures• More Transparency: Increased Public Awareness on Real time Basis. Need for better Public Private Partnership.• Need for Strong Institutional Response• Strengthen the credible Regulatory Framework• First Line of Defence: Community, NDRF / SDRF, Civil Defence, Fire & Emergency Services.• Last Line of Defence: Armed Forces LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 72Key Take Away1. Stitch in Time…..2. Don’t put all eggs…3. Biggest risk in life is not to take risk4. Robust Planning. “Failing to Plan is Planning to fail.5. Create a resilient global supply chain. LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 73Natural Disaster/Emergency Planning:Supply Chain Tips to Better Weather the Storm• What can importers and exporters do to prepare better for natural disasters, port strikes, and other factors beyond their control?• What emergency planning considerations should be in place to better ensure that a company’s supply chains operate in tough times?• How can manufacturers and retailers better weather the storm?• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid= 1129120594922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 74Supply Chain Tips to Better Weather the Storm• Assess Risk. In making your initial sourcing and fulfillment decisions concerning where to buy product, where to manufacture product, where to locate distribution centers and what ports to use, consider the following risk items: – Political risks of the country – Physical and geographic risks • Availability and proximity of primary and alternative logistics networks for all modes (air, ocean, rail and truck) • Historic weather/natural disasters • Labor union action • Infrastructure (power grids and backups, water supply, etc.) – Economic and market risks • Fuel prices • Currency exchange • Inflation• Running different scenarios of best case, average case and worst case begins to get the organization thinking through how they would handle normal variability and disasters alike.• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 75Supply Chain Tips to Better Weather the Storm• Running different scenarios of best case, average case and worst case begins to get the organization thinking through how they would handle normal variability and disasters alike.• Establish a team that will be responsible for the decision making during a crisis and ensure that is communicated throughout the supply chain. Often times the communication channels break down and a lot of people will act and react on their own — thinking that they are doing the right thing — when in fact it may hurt the overall plan.• Don’t put all of your eggs in one basket.• Develop and use on an ongoing basis alternative relationships with suppliers and logistics networks.• Use the services of multiple carriers at all times who use different ports of dispatch. This provides the ability to control costs and service levels in normal times and flexibility in times of high demand or disaster recovery.• Have the ability to diversify transportation. Transportation routes may be disrupted so it is important to have alternate means of transportation.• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 76Supply Chain Tips to Better Weather the Storm• Demand disaster plans from your suppliers and logistics providers, then review and update these plans on a regular basis.• Test the alternatives presented by your suppliers and logistics providers. By conducting such an audit, you will see their level of preparedness.• Make detailed processes, procedures and authorizations readily available for dispatch to new brokers who are being used in an emergency as a result of diverted cargo arrivals.• Constantly monitor each country/region for threats and trends which will impact your supply chain: Weather, port and transportation strikes, fuel prices, currency exchange, inflation, labor rates, pending legislation (i.e., trade sanctions, quotas, anti- dumping duties, Free Trade Programs), political elections that may alter the countrys view of trade.• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 77Supply Chain Tips to Better Weather the Storm• Analyze your products. Understand how demand for your products will be affected by the emergency. – For example, before Hurricane Charley, Home Depot and Lowe’s each created a war room to monitor the storm. By doing so, they were able to supply specific stores with plywood, generators, water and medical supplies, before the storm hit.• Develop a flexible supply chain that is able to capture the large fluctuation in demand. – If your products are needed in case of an emergency, make sure your supply chain has the capacity to keep up with a large increase in demand. If your products are not needed and demand drops, make sure that the pipeline can be slowed down to avoid a build up of unnecessary inventory.• Have a solid cross-trained workforce that can react fast. – If part of your supply chain is directly affected by the disaster, it is important to have people that can keep the operation running as best as possible.• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 78Supply Chain Tips to Better Weather the Storm• Be prepared to avoid certain regions during certain months. For example, Florida ports are subject to hurricanes from June to November. For products destined to Latin America and the Caribbean that gateway out of Florida, carriers, distributors and exporters should have alternate gateways with rates and frequencies established. Perishables or other time sensitive goods may need to exclude South Florida ports from their distribution networks through the more hectic hurricane season months of August, September and October.• Use customs facilities that enable clearances to be obtained and finalized at a location other than the port of entry. By doing so, this provides opportunities to avoid port congestion.• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • 79Supply Chain Tips to Better Weather the Storm• Back up your files. Ensure that all trade-related documentation — especially documents that require keeping for five or seven years, depending upon the regulatory agency — is backed-up/saved in electronic format somewhere offsite. If all records are lost in the actual site, they are easily and readily obtained from a different location.• Conduct a risk assessment of your existing supply chain. If you are uncertain as to how your supply chain will hold up in times of trouble, hire outside global trade experts to assess risk and help strengthen your supply chain.• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594 922 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA
  • SUNIL KOHLIIndian Defence Accounts ServiceJoint Secretary And Financial AdviserNational Disaster Management Authority (NDMA),and National Disaster Response Force(NDRF),Government of India, Ministry of Home Affairs, India # A-1, Safdarjang Enclave, Opposite AIIMS Trauma Centre,New Delhi 110 029Tel: +91 11 26701709 Office +91 11 26180503 Direct +91 11 26701715 Fax, +91 11 26133298 Residence +91 9868151472 MobileE Mail: kohlisk@gmail.com kohlifandma@gmail.com skkohli@ndma.gov.inWebsite: www.ndma.gov.inFACEBOOK: http://www.facebook.com/sunilkumarkohli 80 LOGICHEM ASIA 2011-SUNIL KOHLI INDIA