Supply Chain BCM: Case Study in
Infineon
Jason Teo
Senior Director
Business Continuity
Asia & Japan region
Purpose
The purpose of supply chain resiliency awareness training
is to ensure appropriate Infineon employees are aware
of...
Supply Chain Resiliency
VISION
• Create added value through a safe and
secure supply chain
MISSION
 Coordinate and suppor...
General Situation
• International trade is one key driver of global economic growth.
• In today’s globalized world, supply...
Supply Chain: BC Risks and Impact
Likelihood
Impact:financial,legal,reputation
LOW HIGHMEDIUM
LOWMEDIUMHIGH
Terrorism
Loss...
Supply Chain Resilience
• "* Adverse weather was the main cause of disruption around the
world, with 53 per cent citing it...
• "* Where businesses have shifted production to low cost countries
they are significantly more likely to experience suppl...
28.04.2014
Safeguard for Revenue & EBITSafeguard for Revenue & EBIT
What Business Continuity aims to do?
• Identify potent...
9 March 2011
28.04.2014
10
Myraid of Security regulations
Country SAFE Framework related (i.e.: AEO, mutual recognition
etc)
Other security regime...
NASP
Original
E’prise Mfg
PA / Whse Air/Port Carrier PA / WhseAir/Port Cgnee
Road
Feeder/
Barge
Road
Feeder/
Barge
Road
Fe...
Risk / outage scenarios
Contain
Influence
Control
Contingency Sites
Data Center Facilities Networks
Loss of IT Processing ...
Worst case scenario planning
Total destruction or severe damage to
business facilities and premises
Denial of access to bu...
Integrated Business Continuity Management
Security &
Crisis
Management
Real
Estate &
Facility
Management
Loss & Fraud
Inve...
Key Considerations in Managing
Supply Chain Disaster
• Lowest cost
• Highest Quality
• Fastest delivery
• Always available...
Just In Time Delivery?
28.04.2014
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Jason Teo Supply Chain Business Continuity Management Case Study in Infineon World Continuity Congress Singapore 2014

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Jason Teo, Senior Director Business Continuity Asia & Japan region share his experiences through supply chain resiliency awareness training and Infineon employees are aware of the potential disruption risks associated with transport and logistics operations and the steps necessary to minimize these risks during the World Continuity Congress (WCC) Singapore 22 April 2014 at Carlton Hotel. Copyright 2014 @ World Continuity Congress www.worldcontinuitycongress.com BCM Institute www.bcm-institute.org Read more of Jason Teo @ http://www.bcmpedia.org/wiki/Jason_Teo

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Jason Teo Supply Chain Business Continuity Management Case Study in Infineon World Continuity Congress Singapore 2014

  1. 1. Supply Chain BCM: Case Study in Infineon Jason Teo Senior Director Business Continuity Asia & Japan region
  2. 2. Purpose The purpose of supply chain resiliency awareness training is to ensure appropriate Infineon employees are aware of the potential disruption risks associated with transport and logistics operations and the steps necessary to minimize these risks.
  3. 3. Supply Chain Resiliency VISION • Create added value through a safe and secure supply chain MISSION  Coordinate and support the implementation adequate business continuity standards for shipping and warehousing.  Initialize and coordinate crisis management and loss investigations.  Realize governmental, customers' and authorities' resiliency obligations world-wide  Represent Infineon’s interest at international freight business continuity and security forums (Transported Asset Protection Association-TAPA, Business Continuity Management Institute - BCMi)  Benchmarking
  4. 4. General Situation • International trade is one key driver of global economic growth. • In today’s globalized world, supply chains are complex and involve a great number and variety of parties • Virtually everyone is impacted by any disturbance in the supply chain: manufacturers, shippers, vendors, suppliers, carriers, ports and terminals, freight forwarders, cargo custodians, container leasing companies, insurers, consumers, and government agencies • Unfortunately, supply chains are vulnerable to theft, pilferage, mother nature, and in a worse case scenario, loss of lives.
  5. 5. Supply Chain: BC Risks and Impact Likelihood Impact:financial,legal,reputation LOW HIGHMEDIUM LOWMEDIUMHIGH Terrorism Losses by human error Criminal Offense Theft / pilferage Organized crime Black Market / Product Piracy Natural Disasters, Diseases, Wars… Financial Losses Impact on Insurance Premium Delivery problem – impact on Infineon or customer production Down ranking / Loss of obtained supplier status (i.e. C-TPAT) Reputation Damage IMPACT
  6. 6. Supply Chain Resilience • "* Adverse weather was the main cause of disruption around the world, with 53 per cent citing it – up from 29 per cent in 2009. • "* 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. 28.04.2014 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.
  7. 7. • "* 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. 28.04.2014 Supply Chain Resilience
  8. 8. 28.04.2014 Safeguard for Revenue & EBITSafeguard for Revenue & EBIT 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.
  9. 9. 9 March 2011 28.04.2014
  10. 10. 10 Myraid of Security regulations Country SAFE Framework related (i.e.: AEO, mutual recognition etc) Other security regimes Australia AEO (pilot completed Dec 2007, recommendations being drafted) Advanced Export Data (pilot ongoing). Regulated Air Cargo Agent Regime. China Advanced manifest reporting (will come into effect 1 Jan 2009) Administration measures on classification of enterprises (came into effect 1 Apr 2008) Hong Kong Nil Regulated Agents Regime (RAR) and Road Cargo Systems (ROCARS) (forms of „Known Shipper‟ program). Japan AEO legislation passed 1 Apr 2008. Implementing regulations are ongoing. Nil Malaysia AEO applicable to Local Shipper 1. Customs Golden Client (came into effect Sept 2004). Being revised to a security focused / driven program but remains predominantly focused 2. IATA cargo security pilot programme New Zealand Secure Exports Scheme Rule 109 (a form of the „Known Shipper‟ program) Philippines Customs-Trade Alliance to Protect and Accelerate Trade (C-TAPAT) (yet to be established but a Customs Administrative Order dated 12 May 2008 mandates it) Nil Singapore -Customs‟ Secure Trade Partnership program (came into effect May 2007) Regulated Cargo Agents Regime (RCAR) (for commercial air cargo came into effect 1 Apr 2008 whilst other air cargo including EDS is to be advised) Taiwan Planning for AEO – estimated roll-out date yet to be announced. Regulated Agent Regime (RAR) (started 1 July 2007). Thailand AEO Working Group established 26 Dec 2007 with an estimated AEO Program start date of 1 Jan 2009 Aviation security regulations are under review with the option of introducing a Regulated Air cargo Programme Vietnam AEO programme due to start but no final details available
  11. 11. NASP Original E’prise Mfg PA / Whse Air/Port Carrier PA / WhseAir/Port Cgnee Road Feeder/ Barge Road Feeder/ Barge Road Feeder/ Barge Road Feeder/ Barge Air/Port Authority Gr Hdling/ Terminal Gr Hdling/ TerminalFSR FSR National Security Program Customs-Trade Partnership Against Terrorism/C-TPAT Security Management National Security Program Identifying the nodes in the supply chain TSR TSR TSR TSR CTBSP / TACSSCTBSP / TACSSAEO AEO Business Continuity Management System
  12. 12. Risk / outage scenarios Contain Influence Control Contingency Sites Data Center Facilities Networks Loss of IT Processing Capability Loss of Communications Disaster Preparedness Compliance Fraud Internal Operations & Infrastructure Authorities LEA Regulatory bodies Counterparties Service providers Vendors Clients Partners Finances Services Industry Infrastructure Public Transport Emergency/Disaster Recovery Services External Infrastructure Economic interdependence Public Confidence Business Cycles International linkages
  13. 13. Worst case scenario planning Total destruction or severe damage to business facilities and premises Denial of access to business facilities and premises indefinitely Loss of Key Staff
  14. 14. Integrated Business Continuity Management Security & Crisis Management Real Estate & Facility Management Loss & Fraud Investigations Environmental Affairs & Sustainability Asset Protection Operations Support Business Continuity Planning Business Continuity April 28, 2014 Page 14 Infineon Business Continuity Department reports directly to Infineon Board
  15. 15. Key Considerations in Managing Supply Chain Disaster • Lowest cost • Highest Quality • Fastest delivery • Always available • Always reliable 28.04.2014  Highest Risk?  Highest Cost?  Highest Cost?  BCP  Background checks
  16. 16. Just In Time Delivery?
  17. 17. 28.04.2014

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