Transcript BSI PowerPoint template

Managing Supply Chain Risk and
the Standards Making Process
Copyright © 2013 BSI. All rights reserved.
7/17/2015
Who is BSI?
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By Royal Charter – focused on the development of standards, training and certification activities
designed to Improve performance, manage risk , reduce cost and enable sustainable growth
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Leading Global Standards Creation Body: British, European, ISO, Public and Private Standards
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Global Network: 70,000 clients in 150 countries
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Experienced: The world’s first National Standards Body established in 1901
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Thought Leaders: Founding member of ISO and shaped the world’s most adopted standards, incl. ISO
9001, 14001, 18001, Information Security, Business Continuity, Energy Management, FSCC 22000
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Trusted: We’re a Royal Charter Company, reinvesting profits back into our business to keep business
relevant – Improve performance, reduce cost, ensure sustainability.
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A truly global brand and network – trusted and recognized
• Clients in 150 countries
• 65 offices worldwide
• 3 regional hubs:
• Global key account management
• UK
• Facilitating governance, risk & compliance
• US
• Certifying and verifying global suppliers
• Hong Kong
• Stimulating international trade
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Reputational Risk - Hidden
Supplier Risk
A Social, Quality, Environmental and Security
Challenge
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Everybody is talking about it
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The Challenge: Hidden Supplier Risks
Many Supply Chain Black Holes
What You Don’t See – You Don’t Know
What You Don’t Know – You Can’t Manage
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Reputational Risks
FOOD FRAUD
POLLUTION
FOOD SAFETY
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Environmental & Social Challenges
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World Population growth will magnify the challenge
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1 Billion
Global Carrying Capacity – the planet can support
4 Billion
14 Billion
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Increasing Supply Chain Complexity
• The World’s Largest Shoemaker
doesn’t actually make shoes, but only
designs and sells
• The World’s Largest Personal
Computer Direct seller doesn’t
manufacture its products
but assembles them from components
sourced elsewhere
• The World’s largest beverage
manufacturer has an outsourced
manufacturing franchise model
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Your REPUTATION is
your
of Executives say a strong corporate brand is just as
important as strong product brand
of a company’s market value is attributable to its
brand reputation
of consumers avoid buying a product if they don’t
like or trust the company behind the product
Source Weber Shandwick 2012The Company behind the Brand: In Reputation We Trust
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Protecting Brand, Business & Livelihood
• Understanding your hidden supply chain risk is critical to protecting your brand.
• Supplier traceability leads to improved ability to manage risk
• Better alignment of values with entire supply chain stakeholder
• Land usage, pastoral practices, worker ethics and OHS
• Animal husbandry, breeding and temperament
• Animal welfare and religious issues need to be defined
• Acclimatization, feeding, transportation
• Post shipment management, husbandry, feeding and slaughtering
• Chain of custody – supplier pre-qualification and approval will be critical to ensure
supply chain integrity
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Standards and Standards making process
Standards as knowledge
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Standards are not regulations
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Examples of where Standards have worked well and not worked well
Lack of Standardization
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BS EN ISO/IEC 7810:1996
Physical Characteristics of
Identification Cards
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Remember - Standards are knowledge
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Types of Standards
High
Low
Int’l
Standards
(e.g. ISO 22000)
European Standards (EN)
Australian Standards (AS 5812)
Publicly Available Specifications (e.g. PAS 220, 223)
Private Standards (e.g. BRC, SQF, WQA)
Corporate Technical Specifications (e.g. Coles, ALDI)
Low
High
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Standards Development
BSI works with organisations to develop standards needed in order to:
• Fix specific problems faced by that organisation or Industry
• Fill a gap – no standards currently exist or in development.
We do this by:
• Advising the stakeholders on their specific industry challenges
• Focused on the needs of the sponsoring organisation or industry associations
• Controlled by the BSI guidelines to ensure credibility
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How does it work?
Project Scope
Launch
Finalise Standard
Scope
Domain Research
& Content
Generation
Finalize
Draft
Drafting
Steering Group:
5 – 8 key stakeholders
Train Technical
in the subject area,
Experts
usually identified
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by the client
Review Panel
Wider/public consultation independently
facilitated by BSI. The review group may
include:
• Formal standards committees
• Government departments
• Trade associations
• Technical Experts
• Other industry stakeholders
• Consumer groups
Publication
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Carbon reduction project (Taiwan Environment Agency)
Need: Increase awareness over carbon neutrality / Embed
best Patrice within Taiwan Industry
Project: Revision of International Carbon Neutrality PAS
Benefits:
• Consistent approach to carbons management
• Soft touch regulation
• International recognition for Taiwan EPA in carbon sector
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Reputation Risk: Blood diamond
Issue: Exposure to ethical issue and quality issues
Project: Traceability in supply chain
• Establish a standard methodology for assurance of traceability
in the supply chain
• Train suppliers and vendors along the supply chain on new
standard
Benefits: Brand protection; underpin brand strategy &
product mark; reputation
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Process consistency: Customer service (AIR CHINA)
Issue: After multiple acquisitions, Air China needed
support to design and implement a new Customer Support
Management System (CSMS). Their challenge was
defining.
Project: Create private standards covering customer
management internal best practice and ensuring
commitment with the proposed process
Benefit: Customer service process consistent over the
seven new air-china sites
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Alternative to regulation – Food Industry
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Examples for Primary Industry
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Supply Chain stakeholder
engagement
Land Usage
Sustainability
Origin
Traceability
Animal Welfare
Farm Employees
OHS & Social
Food-Agri
Sector
Water Management
Chemical
Usage
Biodiversity
Community sustainable development
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Development &
Commercialisation of new
technology
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Energy Management
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Sustainability Tomorrow
Don’t leave it to chance
1.
2.
3.
4.
5.
Hope is not a method
Needs a strategy
Strategy does not happen without Governance
Governance does not happen without Ethics
Ethics does not happen without stakeholder engagement
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Key take away
• The meaning of quality has a new definition
• Supply chains are becoming more complex with increasing risk
• Traceability, visibility and transparency of supply chains will be critical
• Regulations are not the only means to push industry good practices
• Voluntary standardization is a key driver in most developed countries, the market makes
the good practices compulsory not government
• Governments & Industry Associations call regularly on BSI to test their Industry
• Organization can benefit / demonstrate leadership using standardization as a means of
defining what good looks like in shaping their business model and protecting their brand
• Be in a position where you are able to tell your supply chain story or someone else will
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