Views - The Forum on Supply Chain Risk + Compliance Management 2016
"The Supply Chain Forum is an event like no other, a unique opportunity that invites the most senior supply chain executives from all sectors of the national economy. This is the event for the people, moving businesses."
Mr. Chitradeep Banerjee, AGM-System & Industry, East India, Bangladesh & Pakistan, TUV Rheinland (India) Pvt Ltd
Mr. Chitradeep Banerjee, an Electronics Engineer is working with TUV Rheinland (India) Pvt Ltd as AGM for System Certification and Industry division. Being based in Kolkata, he is heading the entire Eastern India business including taking care of the systems business operations of Bangladesh and Pakistan. Additionally he is also the Country Head for TAPA and is responsible for TAPA business PAN India.
Professionally he is a Lead Auditor, who is having a wide audit experience in various Industries like Power, Telecom, Engineering Trading, Manufacturing, Institution, FMCG, etc. and has conducted many Second party & Third party audits for various management standards like QMS, OHSAS, Social, TL 9000, CoC etc. Mr. Banerjee has an International exposure of conducting numerous audits in more than 10 countries across the globe. He has also been the key account manager for many big International brands for TUV Rheinland India in a global platform.
Mr. Banerjee had started his career with Reliance, thereafter moving to GCL and before joining to TUV Rheinland, he was heading the business operation of Eastern India & North East for Bureau Veritas formerly (BVQI).
He is having more than 15+ years of experience in System Certification Industry, Consultancy and Training along with hands on experience in Inspection, Vendor Development & Assessment, Testing (Hardline & Soft line), Project Management etc.
Q1.May we request you to highlight the areas of Supply Chain Risks?
Mr. Banerjee: Well, to start off with such a question is really very interesting always. Any sort of risk is bound to get highlighted but fortunately or unfortunately that might turn up to be a disaster if there is a lack of awareness or negligence. Typically from a business perspective, I feel that Supply Chain Risks are those which affect the 3Ms: Man,Material and Machine, taking into consideration the entire chain, from the manufacturer to its suppliers and the consumers. If we think of extending it, the interested parties including the stake holders also gets affected at times. If we go for a risk based thinking approach, we sometimes come across stray cases that might also have a Socio- Environmental Impact.
Risk can be associated with each member/partner of the supply chain. Talking on a very objective note,risk in a supply chain is defined as External Risks (which are outside of our control) and Internal Risks (which are very well within our control)
In many cases a live example to share with --which I have come across while auditing -“Are risk based mitigation plan and real time monitoring as per the designed plan”. However, we should always remember that “every time life is not only about waiting for the storms to pass but it is sometimes also about learning to dance in rain “
External supply chain risks
External risks can be driven by events either upstream or downstream in the supply chain.
demand risks - caused by unpredictable or misunderstood customer or end-customer demand,
supply risks - caused by any interruptions to the flow of product, whether raw material or parts, within your supply chain,
environmental risks - from outside the supply chain; usually related to economic, social, governmental, and climate factors including the threat of terrorism,
business risks - caused by factors such as a supplier's financial or management stability, or purchase and sale of supplier companies,
physical plant risks - caused by the condition of a supplier's physical facility and regulatory compliance.
Internal supply chain risks
Internal risks provide better opportunities for mitigation because they are within your business's control.
manufacturing risks - caused by disruptions of internal operations or processes,
business risks - caused by changes in key personnel, management, reporting structures or business processes, such as the way purchasers communicate to suppliers and customers,
planning and control risks - caused by inadequate assessment and planning, which amount to ineffective management,
mitigation and contingency risks - caused by not putting contingencies (or alternative solutions) in place in case something goes wrong,
cultural risks - caused by a business's cultural tendency to hide or delay negative information. Such businesses are generally slower to react when impacted by unexpected events.
Q2. The Supply Chain Risk: Who owns it? Compliance Management Program: What drives it?
Mr. Banerjee: Honestly, my answer to such a wide open ended question would be, all who come to attend such seminars globally and all the visionary leaders and top management who feel that they are ready to take the ownership– are the ones who own it. Anyway, keeping my little straight forward views aside, Supply chain risk affects a wide range of stakeholders, where the direct players are the producers, the logistic providers, retailers and the customers. In addition, there are the providers of finance, the consumer pressure groups, and politicians to name a few.
A true sense CMP is practiced due to lot of factors starting from complex regulatory obligations combined with market drivers from emerging Corporate Social Responsibility and Sustainability initiatives etc. A lot of pressure also gets generated from downstream customers who seek detailed information of products from manufacturer and suppliers. Consequences from failure to manage these obligations correctly can be catastrophic, going beyond regulatory fines or financial losses, leading to real business impact that could mean significant operational losses, reduced market access and position or limited competitive ability and decreased customer satisfaction. Sometimes to look from the other side of the table, the willingness for internal development and the urge to go global also drives for developing such true sense CMP. Going global invites challenges like uncertainty in local laws and cultural norms which may impact a business. Few other leading differences such as uncertainty in supplier reliability and lead times are issues of major concern as well. However while advancing technology has minimized some aspects of lengthy lead times, the physical transport of materials and finished goods remains always at risk like before either in this part of the world or other part of the hemisphere.
Q3. What do you think are the areas of improvement in transforming Supply Chain in India?
Mr. Banerjee: I feel the greatest impact for the betterment and improvement in any industry comes from the decision makers and the leaders. Awareness on Quality and a vison of transformations always help in paving the right path towards success.Leading organizations are increasingly looking at improving the performance of their supply chains to deliver reduced cost, increased revenue and most importantly increased shareholder and customer value.
The basic areas for continual improvement can also be achieved by collaborating few strategies and best practices of the high performing organizations like:
Provide insight into the health of supply chains by using a robust set of data analytics,
Transform global supply chains through a cross-disciplinary approach spanning operations tax and risk,
Review, improve and assess risk of procurement functions to realize long-term, sustainable benefits,
Improving supply chains and infrastructure in emerging markets as a powerful catalyst to secure new market share and drive revenue growth,
Integrate environmental, sustainable and low carbon aspects into end-to-end supply chains,
Provide sector-specific supply chain insights with our experienced industry supply chain professionals.
Q4. How can stakeholders develop a Risk Based Action Plan for Supply Chain Security?
Mr. Banerjee:“To deliver we should know the requirements first”. At the outset, the stakeholders of supply chain needs to perform a business impact analysis and athorough gap analysis. Risks in the Supply Chain should be identified and categorized, based on the severity scale. This can be only achieved when a frequent surveillance check is carried out considering theinternal as well as external factors. Normally a Risk Based Action Plan can be developed based on the outputs from the below analysis and assessments:-
-MappingStage wise Cargo Flow and Business Partners
-Conduct Threat Assessment
-Conduct Vulnerability Assessment
-Prepare an Action Plan
-Document How Risk Assessments are conducted along with mitigation plans
With experience we should be able to prioritize the risks which have the highest degree of impact on the supply chain. However today maximum companies are not only globalized, but also have become more complex in their operation which in turn limits them to do these analyses on their own. In such cases where a third party needs to be involved,we at TUV Rheinlandcan always be a partner to provide solutions and strategies for an effective, risk-free supply chain.
Q5. Your views on Standards & Certifications in mitigating Supply Chain Risks. Should the Standards & Certifications be made mandatory for the Supply Chain ecosystem? How do you think it is achievable?
Mr. Banerjee: The only way to find out what I have done is to check and re-check. This will again become more effective when a third eye conducts the auditas per a prescribed set standard and find out the facts in the system. Here when it comes to security and supply chain risk, I strongly feel and believe that standards and certifications should be made mandatory. Government should take steps to safeguard the interest of the end consumer. Standards and Certifications are necessary to maintain quality, security, safety,etc. within the systems. It always minimizes the risk factors and helps in giving a feel of reliability, sustainability and business continuity in the entire eco system.
To achieve such structures, selecting the right certification body is very important; who can guide and help in the journey of certification adding value at every step.
Q6: Do you think the stakeholders from Supply Chain ecosystem at any and all levels whether in public and/or private and/or the national and global top professional and trade associations and organizations should come forward and utilize such a forum/platform such as, ‘The Forum on Supply Chain Risk + Compliance Management ‘, and encourage and support such forums?
Mr. Banerjee:The Forum on Supply Chain Risk + Compliance Management is an excellent platform,which brings together all the players as well as stakeholders in the supply chain ecosystem.This can be a win-win situation for all the parties as they can discuss the problems and limitations in the system and we as a technical service provider canalways help in finding the right and effective solution.As the global economy is redefined by new standards of connectivity, customer centricity and sustainability, the supply chain is under pressure to drive business transformation.
With an emphasis on exemplary strategy, the Supply Chain Forum gathers executives from across all sectors to re-envisage supply chain and logistics through the lens of compelling keynotes, discussion sessions and networking opportunities.
The Supply Chain Forum is an event like no other, a unique opportunity that invites the most senior supply chain executives from all sectors of the national economy. This is the event for the people, moving businesses.
▶ Gain insights from the experiences of the nation’s most influential organisations
▶ Be Inspired by the most distinguished minds in supply chain and logistics, both locally and internationally
▶ Learn the lessons of exemplary practice from high-performing teams
▶ Uncover what it takes to be a real game changer in supply chain and logistics today
▶ Determinewhat the future holds for supply chain and logistics
▶ Network effectively at dedicated lunches, breaks and networking drinks sessions.
- Supply Chain RISK + COMPLIANCE MANAGEMENT – What it really means to MANUFACTURERS?
- Transforming the Supply Chain with National and Global STANDARDS to manage RISK and COMPLIANCE.
- IMPORTANCE & ROLE of STANDARDS & CERTIFICATIONS in Supply Chain RISK MANAGEMENT + COMPLIANCE.
- Best Practices Case Studies + Use Cases in Supply Chain Risk + Compliance Management.
- Securing the Supply Chain ECO-SYSTEM and the role and responsibilities of the STAKEHOLDERS;
- Logistics Providers
- Freight Carriers
- Law Enforcement Agencies
- Government Agencies
- Security Professionals
- Logistics Professionals
- Freight Services Industry Companies
- Insurance Companies
- Audit Companies
- Technology Companies
- The IMPORTANCE & ROLE of TECHNOLOGY in STANDARDS Development
- TELEMATICS for Cargo + Driver Safety and Security
- Cargo Safety & Security - Explore how telematics is used for combating hijackings, thefts and robberies
- Driver Safety & Security - Explore how telematics technologies can help enhance the driver safety and security by real time monitoring of driver behavior and driver fatigue
- Fleet Performance and Fuel Efficiency - The impact of telematics and fleet management technology on insurance
- Cold Chain Management - temperature-controlled supply chain:
- Life Sciences: Clinical Trials - Hospitals and Blood - Pharmaceuticals - Vaccines,
- Fresh and Processed Food - Produce - Seafood - Meat and Poultry - Dairy - Floral
- Technology Solutions for Warehouse Safety & Security
- Physical Security Information Management (PSIM) - An Integrated Approach to Warehouse Security for simplifying the command and control - at-a-glance snapshot of all operations, enhancing their situational awareness and increasing their ability to react to any security infringements within the warehouse environment - Witness how a PSIM platform that seamlessly brings together otherwise disparate solutions - Access Control, CCTV, RFID, Intruder detection and Fire systems.
- TELEMATICS for Cargo + Driver Safety and Security