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

1. Supply Chain BCM: Case Study in
Infineon
Jason Teo
Senior Director
Business Continuity
Asia & Japan region

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. 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. 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. 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. 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. • "* 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.
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Supply Chain Resilience

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 March 2011
28.04.2014

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. 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. 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. 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. 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. Key Considerations in Managing
Supply Chain Disaster
• Lowest cost
• Highest Quality
• Fastest delivery
• Always available
• Always reliable
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 Highest Risk?
 Highest Cost?
 Highest Cost?
 BCP
 Background checks

16. Just In Time Delivery?

17. 28.04.2014