SUPPLY CHAIN RISK MANAGEMENT

Transcription

1 SUPPLY CHAIN RISK MANAGEMENT

2 AGENDA Objectives Approach Key Risks for 2017 and Beyond Supply Risk Warehouse Distribution Containers

3 Objectives The high crime rate, and in particular serious and violent crime has a significant impact on Fast Moving Goods Companies (FMCG), in that it not only impacts the delivery of products to consumers but poses a bigger to people The parties seek to establish a working relationship, which is built on their joint expertise and resources, for purposes of: Initiating a structured and co-ordinated approach by sharing crime relevant information and trends to combat serious and violent crimes against businesses. Enhancing the prevention, combating, investigation and prosecution of the aforementioned crime types in which the parties have a vested interest; Lobbing as an industry to activate law enforcement resources

4 Approach Partner with the GTAIB Run the forum from SALBA Any other options?

5 Complex Logistics

6 Global Risks Rate Operational Risks for Organisation's: 2016 Operational Risks for Organisation's: Cyber Risk Cyber Risk and Data Security 2 Conduct Risk Regulation 3 Regulation Outsourcing 4 AML, CTF and sanction compliance Geopolitical Risk 5 Organisational Change Conduct Risk 6 Outsourcing Organisational Change 7 Recruitment and retention ICT Failure 8 ICT Failure AML, CTF and sanction compliance 9 Terrorism Fraud 10 Regulatory Fines Physical Attacks

7 Key Risks for 2017 and Beyond

8 Hijacking

9 CRIME STATISTICS

10 An average of 3 trucks hijacked per day in SA

11 Predictive Intelligence

12 Predictive Intelligence cont

13 Site Risk Assessment Baseline Security Packaged Security Security Vulnerability Analysis (SVA) Warehouse Risk Benefits of a security Risk Assessment/Analysis (Broder 2006) To highlight areas in which greater (or lesser) security required To help assemble some of the facts needed for the development and justification of costeffective countermeasures Clearly map out risk mitigation TEAR, standing for transfer, eliminate, accept and/or reduce risk DDDR, standing for Deter, Detect, Delay and Respond Company Standards Security Review and Assessment Physical Security and Perimeter Security Physical Security Building Security Physical Security Access Control Product Protection Secure Disposal

14 Warehouse Risk in Practice Use and embrace technology At the gate In the warehouse Intruder detection tools Patrol system Incident reporting Scales Electric Fence Breathalysers Integration and central reporting Stock takes vs incidents reported Forklifts Dirt bins Expired stock & Disposal Test controls regularly Regular integrity checks on staff Stock verification before loaded Contracts & Standard Operating Procedures Main Agreement Man Guarding Site Security Management Plan Technology (Access Control, CCTV, Alarms, Electric fence

15 Distribution Risk Staff Risk Management Vetting and Re-vetting Profiling Fleet Management Lights Panics Truck phones Locks Cameras PPE Valid truck license Drivers license & PDP Tyres TARPS Fire Extinguisher Safety triangle Tracker Hired trucks Training/Awareness Hijacking General security Risk Route Planning Stock shortages Staff involved Predictive Intelligence report Routes Unrest Crime Security Escorts Standards Penalties

16 Distribution Risk Case Study Modus Operandi - Street corners - Traffic lights - Delivery Points Hijacking Modus Operandi - Police - Late at night - Early morning - Changing horse

17 Distribution Risk Case Study Cont..

18 Container Risk All products including gifting Destination SA Port of entry Locks Rail or Road Warehouse Bond Keeping container secure on site Contracts with security Audits against standards Up-to-date risks

19 Thank you Udeen Singh Head of Corporate Security & Brand Protection Diageo SA