understanding your supply chain & reducing the risk of supply chain disruptions
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Understanding Your Supply Chain & Reducing The Risk of Supply Chain Disruptions. 8th March 2012. Contents. DHL Supply Chain - Overview What Does Your Supply Chain Really Look Like? What Can Cause Supply Chain Disruptions? – DHL Examples How Far Down / Up The Supply Chain Do You Need To Go? - PowerPoint PPT PresentationTRANSCRIPT
Understanding Your Supply Chain & Reducing The Risk of Supply Chain Disruptions
8th March 2012
Page 2
DHL Supply Chain - Overview
What Does Your Supply Chain Really Look Like?
What Can Cause Supply Chain Disruptions? – DHL Examples
How Far Down / Up The Supply Chain Do You Need To Go?
What Key Information Needs To Be Derived From Your BIA?
What Best Practice Can We Draw Upon?
Contents
Page 3
DHL Supply Chain
WHAT DOES DHL SUPPLY CHAIN
DO?
Page 4
Deutsche Post DHL - Corporate Structure
Page 55
DHL Supply Chain - Global Scale and Coverage
DHL Supply Chain operations
Other DP DHL operations
(DP DHL operates everywhere except the Paracel and Spratly Islands)
DHL Supply Chain
Operates in Over 60 countries
Facilities in 2,500 locations
Employees Over 140,000
Managed Warehouse space 22.8 million square meters
Transportation management Over € 5 BN
Page 6
DHL Supply Chain – Europe, Middle East & Africa (EMEA)
DHL Supply Chain EMEA Countries
Page 7
DHL Supply Chain - Products & Sectors
INTEGRATED SUPPLY CHAIN SOLUTIONS
Manufacturer & Raw Materials
Export / Import Activities
Primary Movement Distribution CentersSecondary Movement
B2B & B2C Distribution
After-sales and Reverse Logistics
Services
Sec
tor
Sol
utio
ns
Consumer
International supply chainmanagement
Distribution to stores In store logistics Home delivery
Inbound to manufacturing
Assembly and configuration
Technical distribution Technical services Service parts logistics Reverse logistics Environmental
Compliance
Inbound tomanufacturing
Service andreplacementparts
Infrastructure Logistics
In-Plant services
Clinical trials logistics Pharmaceutical grade
logistics Kitting & Rework Hospital Logistics Temperature assured Direct to pharmacy Patient transport
Contract manufacturing
Co-packing Shared-user and
campus solutions Ambient and
temperature controlled
HealthcareAutomotive &
Industrial TechnologyRetail &Fashion
Consultancy services, Lead Logistics Partner services, Procurement services, Sustainability services
Page 8
DHL Supply Chain - Overview
What Does Your Supply Chain Really Look Like?
What Can Cause Supply Chain Disruptions? – DHL Examples
How Far Down / Up The Supply Chain Do You Need To Go?
What Key Information Needs To Be Derived From Your BIA?
What Best Practice Can We Draw Upon?
Contents
Page 9
REVERSE LOGISTICS
OVERSEAS MANUFACTURER
UKMANUFACTURER /
SUPPLIER
INTERNATIONAL SUPPLY CHAIN SERVICES
OPTIMISEDTRANSPORT
REGIONAL DC NETWORK
AND/OR OUTBASES
REGIONAL DC NETWORK
AND/OR OUTBASES
REGIONAL DC NETWORK
AND/OR OUTBASES
NATIONAL DC
WAREHOUSING& ORDER
FULFILMENT OPTIMISEDTRANSPORT
RETAIL STORE
END CONSUMER
MERCHANTS/FRANCHISES
AIRSIDE
DHL Supply Chain – Example
Page 10
DHL Supply Chain - Overview
What Does Your Supply Chain Really Look Like?
What Can Cause Supply Chain Disruptions? – DHL Examples
How Far Down / Up The Supply Chain Do You Need To Go?
What Key Information Needs To Be Derived From Your BIA?
What Best Practice Can We Draw Upon?
Contents
Page 11
BCM Backdrop - Recent Business Disruptions
Swine Flu, 2009
Ash Cloud, April 2010 Moscow Heat Wave/Smog, Aug 2010
UK Snow Coverage,
Nov 2010
Example Site Incident, June 2011UK Civil Unrest, Aug 2011
Nigeria Fuel Strikes, Jan 2012
UK Industrial Action,
Nov 2011 Unexploded Bomb Hungary, Dec 2011
DHL SUPPLY CHAIN MANAGING BUSINESS DISTRUPTIONS
ACROSS OUR CUSTOMER BASE
Page 12
DHL Supply Chain - Overview
What Does Your Supply Chain Really Look Like?
What Can Cause Supply Chain Disruptions? – DHL Examples
How Far Down / Up The Supply Chain Do You Need To Go?
What Key Information Needs To Be Derived From Your BIA?
What Best Practice Can We Draw Upon?
Contents
Page 13
REVERSE LOGISTICS
OVERSEAS MANUFACTURER
UKMANUFACTURER /
SUPPLIER
INTERNATIONAL SUPPLY CHAIN SERVICES
OPTIMISEDTRANSPORT
REGIONAL DC NETWORK
AND/OR OUTBASES
REGIONAL DC NETWORK
AND/OR OUTBASES
REGIONAL DC NETWORK
AND/OR OUTBASES
NATIONAL DC
WAREHOUSING& ORDER
FULFILMENT OPTIMISEDTRANSPORT
RETAIL STORE
END CONSUMER
MERCHANTS/FRANCHISES
AIRSIDE
DHL Supply Chain – Example
Page 14
DHL Supply Chain EMEA – Warehouse & Transport
BCM fully in place across our Warehouse & Transport operations
Page 15
DHL Supply Chain – Example End to End Business Resilience
REVERSE LOGISTICS
OVERSEAS MANUFACTURER
UKMANUFACTURER /
SUPPLIER
INTERNATIONAL SUPPLY CHAIN SERVICES
OPTIMISEDTRANSPORT
REGIONAL DC NETWORK
AND/OR OUTBASES
REGIONAL DC NETWORK
AND/OR OUTBASES
REGIONAL DC NETWORK
AND/OR OUTBASES
NATIONAL DC
WAREHOUSING& ORDER
FULFILMENT OPTIMISEDTRANSPORT
RETAIL STORE
END CONSUMER
MERCHANTS/FRANCHISES
AIRSIDE
Tier 2Suppliers
Tier 3Suppliers
Internal SuppliersFinance Function
Fuel CentreIT Data CentreHR Function
Regional EngineeringFleet Compliance
Etc…
External SuppliersAgency Providers
MHE SuppliersVehicle Maintenance Providers
CaterersEtc…
Page 16
DHL Supply Chain EMEA – Functions
BCM fully in place across our Functions and Data Centres
EMEA HR People Service, UK
EMEA Data Centre, PragueEngineering & Fleet Services - UK & Ireland
EMEA Finance
Page 17
DHL Supply Chain - Overview
What Does Your Supply Chain Really Look Like?
What Can Cause Supply Chain Disruptions? – DHL Examples
How Far Down / Up The Supply Chain Do You Need To Go?
What Key Information Needs To Be Derived From Your BIA?
What Best Practice Can We Draw Upon?
Contents
Page 18
What Key Information Needs To Be Derived From Your BIA?
You can’t protect what you don’t know!
The purpose of a BIA is to identify:
Your critical activities and functions and their independencies The minimum acceptable level of service for those activities or functions The Recovery Time Objectives (RTO) and Maximum Tolerable Period of
Disruptions (MTPD) for those activities or functions What resources are needed to achieve these minimum levels of service
Page 19
DHL Supply Chain – Overview
What Does Your Supply Chain Really Look Like?
What Can Cause Supply Chain Disruptions? – DHL Examples
How Far Down / Up The Supply Chain Do You Need To Go?
What Key Information Needs To Be Derived From Your BIA?
What Best Practice Can We Draw Upon?
Contents
Page 20
DHL Supply Chain Aligned to BS25999 – British Standard for BCM
Page 21
EMEA BCM 10 Steps - Aligned to BS25999
BCM Policy 1Site has clearly displayed the BCM Policy Statement and has communicated this to all collegues on site. Site
has created a Site BCM Scope and Strategy document
BCP’s 8Site to create BCP‘s for all possible risks that could affect critical operations and the BCP‘s
are to detail how to manage the incident and how it will recover its activities
Provision of
Resource2 Site has appointed a BCM Champion with appropriate seniority to be accountable for implementing BCM
Maintaining and Reviewing 9Site has ensured that it‘s BCM arrangements are reviewed and documented at
planned intervals
BIA 4Site has completed the DSC approved BIA document and identified activities that support its key
products and services, the MTPD, RTO and its priorities for recovery of its critical activities
BIA Risk
Assessment5
Site has completed the DSC approved BIA Risk Assessment document and has identified and
documented the site’s threats
IMT 3 Site has formed an Incident Management Team with deputies for all key functions
Determining BCM
Strategy7
Site has determined how it will recover each critical activity within its recovery time objective,
including the resources required for resumption
Testing and Exercising 10Site IMT has successfully carried out 3 table top exercises in the past 12 months
and any lessons learnt have been incorporated into future plans
Determining Choices 6Using the DSC approved Risk Assessment document the site has, for each of its critical activities, identified available risk solutions
Page 22
DHL Supply Chain BCM Tool – Currently Under Development
Improved Consistency Robustness
Simplicity
Improved Efficiency
Improved Visibility
Communication
Page 23
For more information about the DHL Supply Chain BCM approach, please contact:
Graham Clark – Business Continuity Manager – [email protected]
BCM Contacts - EMEA