Views - The Forum on Supply Chain Risk + Compliance Management 2016
"By adapting standards established by TAPA and management systems standards developed by International Standards Organization like ISO 28000, enterprises can have a risk based framework for supply chain security."
Mr. S. Balasubramoniam, National Manager -Business Development & Key Accounts, DNV-GL Business Assurance
Mr. S. Balasubramoniam, B. Tech has 35 years’ experience in industry in variety of roles & responsibilities. In the last 26 years, he has been working for DNV GL, erstwhile Det Norske Veritas, leading certifying body based at Hovik, Norway. His key responsibilities handled include lead auditor in quality, environment, safety management systems, working with global customer management teams to develop and deliver specific solutions to companies to enable them to interpret and set up processes around sustainable supply chain processes. Being a key trainer in DNV GL, he has delivered over 200 sessions of training for executives in various companies large and small around management system standards on a variety of topics.
Q1. May we request you to highlight the areas of Supply Chain Risks?
Mr. Balasubramonian: Today,Supply Chainsneed to satisfy multiple stakeholders with different expectations. They, therefore, perceive risks froma variety of sources – they could be global or local in nature. Key risks for large number of global companies are loss of reputation or brand, or non-compliance to legislations in countries where they operate or are headquartered through actions in their supply chain, spread all over the globe. In addition, many global phenomenon likeclimate change ,fluctuation in currency rates against each other, terrorism, inability to catch up with technological changes,inadequate quality of products and services and differences in socio- economic conditions in different countries pose significant risks to safety, security , quality or business continuity itself.On the opportunity side, flexibility, cost competitiveness, ability to create short capacities with minimal investments remain as highlights.All these together are called Sustainability risks and opportunities, which can be classified broadly into economic, environmental or social, known as triple bottom line.
Q2. The Supply Chain Risk: Who owns it? Compliance Management Program: What drives it?
Mr. Balasubramonian: Ownership of Supply Chain risksare shared by different segments in the supply chain depending what risks we are talking about. While loss of reputation may harm the bard owner more, ownership for taking actions may be at anywhere in the supply chain. Increasingly, either as part of own policies of corporategovernance programmes or due to increased scrutiny by different stakeholders, the brand owners or the customers are demanding better compliance from their suppliers to the established policies apart from legal requirements.
Q3. What do you think are the areas of improvement in transforming Supply Chain in India?
Mr. Balasubramonian: Though Indian Industry as a whole has improved over time in many aspects, ability to produce qualityproducts and services need to be further improved to meet global standards. In today’s business, apart from quality, improving environmental and social governance are of equal importance to stakeholders. Transparent, ethical governance and adapting international standards would help drive Indian supply chain to global standards.
Q4. How can stakeholders develop a Risk Based Action Plan for Supply Chain Security?
Mr. Balasubramonian: Stakeholders need to develop policies based on perceived risks to security depending on vulnerabilities in the supply chain. By establishing strong process to identify threats and vulnerabilities on a continuous basis and taking adequate precautionary controls would be required. By adapting standards established by TAPA and management systems standards developed by International Standards Organization like ISO 28000, enterprises can have a risk based framework for supply chain security.
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. Balasubramonian: Standards and certifications provide expertise combined with assurance. Standards are established through an extensive process of engagements with multiple stakeholders, after due deliberations. Certifications are awarded through an internationally governed process by certifying bodies that follow again standard, independent processes. Together they assure various stakeholders that products and services meet their expectations to a large extent. Certifications should remain as market driven and serve as a strong differentiator among suppliers. However certifications also need to be functioning as a tool for continual improvement in meeting stakeholder expectations in order to remain relevant all the times. This can be achieved only by all stakeholders of the Supply Chain ecosystem working together, sharing the risks and benefits with each other. Certifying bodies in turn, need to be providing constant oversight through competent, trained resources.
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?
Platforms like “The Forum on Supply Chain Risk + Compliance management” really provide an opportunity to share each others’ concerns and opportunities and learn from others’ experiences. Through such forums, the participants get to know risks and possible solutions in different segments in Supply Chain and to exploit new opportunities available in the market. They also get updated on current developments in technology and how they can benefits their own industry.
Q7. What discussion topics would you like the forum to cover and deliver? And, what would you like to take away from ‘The Forum on Supply Chain Risk + Compliance Management in 2016?
I would expect the forum to cover different challenges faced by the global business through their supply chains, international standards and processes which could be adapted by enterprises to negotiate and mitigate negative impacts while enabling themselves to exploit the opportunities using efficient technologies and competent human resources.
- 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
- 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
- TELEMATICS for Cargo + Driver Safety and Security