03 managing impacts of supply chain disruption from regional

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  • 100% Freight Screening to be enforced under the new C-TPATA disaster, whether man-made or natural, is measured by the scale of its impact to lives and damage to property, both directly and indirectly.
  • The strength of a typical Supply Chain from point A to point B is measured by its weakest link. TAPA security standards provide a scalable, transparent, measureable, and globally recognized standards that buyers can relied on for securing their supply chains.
  • The survey, Supply Chain Resilience 2010, was sponsored by Zurich and conducted by the Business Continuity Institute. It covered covers 35 countries and 15 industry sectors.

Transcript

  • 1. Managing Impacts of Supply Chain Disruption from Regional or Global Disasters
    Jason Teo
    Senior Director
    Business Continuity
    Asia & Japan region
  • 2. 2
    Myraid of Security regulations
  • 3. Supply Chain Model
    CTBSP / TACSS
    CTBSP / TACSS
    AEO
    AEO
    FSR
    FSR
    TSR
    TSR
    TSR
    TSR
    NASP
    National Security Program
    National Security Program
    Customs-Trade Partnership Against Terrorism/C-TPAT
    Security Management
    3
  • 4. Supply Chain Resilience and Supply Chain Security
    "* Adverse weather was the main cause of disruption around the world, with 53 per cent citing it – up from 29 per cent last year.
    "* Unplanned IT and telecommunication outages was the second most likely disruption and the failure of service provision by outsourcers was third, up to 35 per cent from 20 per cent in 2009. These incidents led to a loss of productivity for over half of businesses.
    "* 20 per cent admitted they had suffered damage to their brand or reputation as a result of supply chain disruptions. For ten per cent of companies the financial cost of supply chain disruptions was at least 500,000 euros.
  • 5. Supply Chain Resilience and Supply Chain Security
    "* Where businesses have shifted production to low cost countries they are significantly more likely to experience supply chain disruptions, with 83 per cent experiencing disruption. The main causes were transport networks and supplier insolvency.
    "* 50 per cent have tried to optimise their businesses through outsourcing, consolidating suppliers, adopting just-in-time, or lean manufacturing techniques.
    "* Only 7 per cent had been fully successful in ensuring suppliers adopted business continuity management practices to meet their needs, with nearly a quarter not taking this step. Even when suppliers were regarded as key to their business, nearly half of respondents had not checked or validated their supplier's business continuity plans.
  • 6. What Business Continuity aims to do?
    Identify potential business interruption risks
    Provide a framework for ensuring
    resilience,
    contingency and
    capability of effective responses
    that secures the
    supply chain,
    safeguards the commitments to our customers,
    our reputation,
    brand and
    value creating activities.
    Safeguard for Revenue & EBIT
    Safeguard for Revenue & EBIT
  • 7. 9 March 2011
  • 8. Reactions
    Global Crisis Team set up to support local DPO team
    Emergency communications were activated to establish the safety status of employees and their families.
    Emergency relief, worth 100Euros, shipped to Japan for customers and employees
    Accommodations were reserved in Osaka and Nagoya for employees staying in Tokyo to support evacuations.
    Alternate working arrangements made (ex. Work from home)
  • 9. Key Considerations in Managing Supply Chain Disaster
    Lowest cost
    Highest Quality
    Fastest delivery
    Always available
    Always reliable
  • 14. Just In Time Delivery?
  • 15. Confucius:
    If you think in terms of a year, plant a seed.
    If you think in terms of ten years, plant a tree. 
    If you think in terms of a hundred years, teach the people
  • 16. THANK YOU