k k k
Strain on the supply chain
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upply chain resilience is areas such as environmental issues, supply chain risks faced. Organisations
an organisation resilience corporate responsibility, product need to view their supply chains from a
issue”, Antonio Ribeiro of quality and business ethics which more strategic perspective and consider
Det Norske Veritas told delegates in all fall under the sustainability remit. the wider scope of risks posed,
his opening address on day one of “One thing is certain – the impact of a particularly in relation to sustainability.
the BCM conference. Over the last supply chain disruption associated with He urged companies to consider
20 years, he said, supply chains have a sustainability issue will have a major sustainability when ascertaining their
becoming an increasingly important impact on your reputation and your defi nition of criticality.
mechanism in enabling companies to stakeholder relations.” Antonio fl agged Second is managing the supply
improve organisational effi ciency and up two issues in particular which could chain risks effectively. This he said is
reduce costs. However, the increasing hit a company’s reputation: the use of not an end, but a process. It is about
complexity of such chains and our child labour by suppliers within the understanding the sustainability
growing reliance upon them has made chain; and the extent to which your implications of supply chain decisions
us more vulnerable to any potential suppliers are extending the size of your and embedding the concept into
disruptions. Furthermore, with rising carbon footprint as the world looks to your key functions, such as ERM,
budgetary constraints, companies have tackle climate change. procurement and communications. He
sought ways of reducing their supply Antonio highlighted gaps which urged a collaborative approach and
chain spend through measures such he said existed in our approach to emphasised the fact that supply chains
as consolidation and renegotiating supply chain resilience, including: a are built on relationships and said that
supplier contracts which are also failure to see supply chain issues as companies should seek to use their
serving to make such networks more BCM issues; a simplistic approach infl uence over their suppliers to help
fragile. to tackling sustainability issues; an manage the risks faced.
As a result, supply chain resilience inability to effectively classify our Third, he concluded, is assuring
has clearly become a BCM challenge critical suppliers; and a limited stakeholders. It is essential that you
that must be addressed. “This is engagement with suppliers and an know who your key stakeholders are,
an important challenge in the new over-reliance on their resilience claims. their knowledge of these issues and
business environment created by the Organisations, he added, also tend what is key to them. Be proactive
fi nancial crisis,” he said, adding that to give limited consideration to the and be able to demonstrate your
the economic downturn has resulted potential reputational issues posed by commitment to managing these
in a “trust defi cit” in companies by sustainability-related incidents in their issues. Be transparent in everything
consumers. supply chains. that you do and consider how best
A further issue that must be factored “There are three main areas which to communicate your supply chain
into the supply chain equation is that defi ne supply chain resilience success,” sustainability efforts to the outside
of sustainability. Antonio highlighted he said. First is an understanding of the world.
2  Continuity  November/December 2009
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