“Examining The Role Supply Chain Best Practices Can Play In Disaster Management”

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FELICITATIONS FROM

LOGICHEM ASIA 2011-SUNIL KOHLI INDIA

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“Examining The Role
Supply Chain Best Practices
Can Play In
Disaster Management”
by
Sunil KOHLI, IDAS ndc
Indian Defence Accounts Service
Joint Secretary and Financial Adviser,
National Disaster Management Authority
(NDMA) and
National Disaster Response Force (NDRF)


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“Supply Chain Issues In Disaster Management”:
Key Issues

1. Security And Safety In Chemical Supply Chain.
2. Designing A Proactive Disaster Management Framework
3. Leveraging Knowledge Of Disaster Management To
Prepare Your Chemical Supply Chain.
4. Integrating It With Supply Chain For A Better Response.
5. Developing A Collaborative Approach With Stakeholders
6. The Critical Role Of Supply Chain In Managing Disasters.
7. Logistics Is A Key Professional Element In Successful
Disaster Management
8. Using Information And Technologies To Speedup
Response And Decision Making.


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Precap
• Key Issues in the context of INDIA’s National
Disaster Management Framework
• Key Challenges
• Way Ahead
• Q&A


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Key Issues

1. Security And Safety In Chemical
Supply Chain.
2. Designing A Proactive Disaster
Management Framework


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Prevention is better……..
• Security and safety always come first in any chemical Industry.
• What preparation needs to be carried out to handle disasters in
Chemical Industries?
• Vulnerability is increasing because of:
– Population density & urbanization
– Settlements in hazard prone areas
– Poor natural resource management
• Disasters are not entirely a humanitarian issue but also an economic issue.
• Preparedness and risk reduction programs must be based on good
information and valid assessments of hazards - vulnerability and
capacities.
• Cost Benefit Analysis: Mitigation Vs Response 1$:7$


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INDIA’S INITIATIVES
• Setting up of NDMA
• Disaster Management Act 2005
• Designing A Proactive Disaster
Management Framework
• Management of Chemical Industrial and
Terrorism Emergencies and Issue of National
Guidelines on Managing these Chemical
Disasters.
• SOP for Transportation of Chemical Goods


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NATIONAL DISASTER
MANAGEMENT AUTHORITY
(NDMA)


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NDMA: DM ACT 2005
• The Disaster Management Act, 2005
brought National Disaster Management
Authority (Apex Body) at National level
• The Act lays down Institutional and
coordination mechanisms at the
National, State, District and Local levels
and provides for establishment of Disaster
Response & Mitigation Funds


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Paradigm Shift in Approach to DM
• From the earlier Reactive Approach
wherein focus was primarily on response
and relief now on to Proactive
Approach of prevention, mitigation and
preparedness.
• National Roadmap for Disaster Management
(DM)
• Primary objective: Mainstreaming of DM into
the Development Process.
• Create a Culture and ethos of Preparedness &
Prevention across the country

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DISASTER MANAGEMENT
• Disaster Management means a continuous and integrated
process of planning, organizing, coordinating and implementing
measures which are necessary or expedient for-
• Prevention of danger or threat of any disaster;
• Mitigation or reduction of risk of any disaster or its severity or
consequences;
• Capacity Building;
• Preparedness to deal with any disaster;
• Prompt response to any threatening disaster situation or disaster;
• Assessing the severity or magnitude of effects of any disaster;
• Evacuation, rescue and relief;
• Rehabilitation and reconstruction;

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DISASTER MANAGEMENT CONTINUUM

• The only predictable aspect
of disaster is the
unpredictability which is so
predictable
• We are dealing with the
unpredictability of this
very high probability - we
do not know where it is likely
to happen and when it is Disaster
going to happen and Strikes
therefore the need to be
prepared.
• Preparedness is a shared
responsibility

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NDMA
National
Disaster
Management
Structure


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DISASTER MANAGEMENT
• Address all issues relating to
– Governance, Risk Management and Compliance
– Prevention, Mitigation, Capacity Building,
Preparedness, Response, Assessment of
Vulnerability, Mapping, Evacuation, Rescue,
Relief, Rehabilitation and Reconstruction.
• In a coordinated, collaborative, and Integrated Manner
by Leveraging Technology effectively.
• Main focus is on mainstreaming DRR into the
Development process.

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Action Plan for Disaster Risk
Management


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KEY TERMS
• Disaster
• When the dimension of an emergency situation grows to
such an extent that the impact of the hazard is beyond
the coping capability of the local community and/or
the concerned local authority.
• Disasters are of two types
– Natural Disasters (Earthquake, Cyclone, Flood, Landslide,
Tsunami, Volcano etc)
– Man-made Disasters (CBRN, Terrorist attack, etc)

• In emergency Bottom-up approach is followed, while during
disaster Top-down approach is followed.

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Mainstreaming DRR into the Development
Process
•Mainstreaming DRR into the Development
Process essentially means looking critically at each
activity that is
•Being planned, not only from the perspective of
that business process activity,
•But also From the perspective of embedding
DRR attributes into that process so that it
addresses the DRR concerns.


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Business Process

DRR


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MAINSTREAMING ………..
• DRR strategies and measures are most effective when
integrated into the framework of overall Development
Process.
• DRR should not be considered as an end in itself which
requires incorporation into Development Process but
rather as an integral component of all Development
Process in the first place.
• Hence, a central theme of mainstreaming is to address
DRR concerns within the Development Process context
and ensure that Development Process, Policies, Projects
and Programmes do not unwittingly create new forms of
vulnerability.

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Addressing concerns of Security and
Safety in Chemical Industry


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Genesis of the National Disaster
Management Guidelines
• The National Disaster Management Authority has
assumed the responsibility of strengthening the
existing Chemical emergency management
framework by involving all the stakeholders in a
holistic approach through a series of mutually
interactive, reciprocal and supplementary actions to
be taken on the basis of a common thread—the
National Guidelines.
• Based on these Guidelines, Disaster Management
plans will be drawn out by the stakeholders at all
levels of administration.


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Protection Layers For Disaster Free
Society


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Chemical Disaster Management
• NDMA concerned about the safety & security of hazardous
chemicals.
• National Guidelines for prevention, mitigation, capacity
development, preparedness & response to chemical industrial
as well as chemical terrorism disaster formulated.
• Prepared in consultation with more than 200 renowned
experts from leading national scientific & technical institutions
& apex industrial associations.
• Defence Research & Development Organization (DRDO)
and National Authority, Chemical Weapons Convention
have contributed very significantly.


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National Guidelines: Chemical Disaster Management

• Guidelines focus on safety of industrial
installations, storages and transportation of
hazardous chemicals by adopting good
engineering practice.
• Besides, chemical dirty bomb, Terrorists may
sabotage chemical plants & petroleum product
pipelines.
• Emphasized the Need for strict surveillance
& safety measures for preventing chemical
terrorism.

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Guidelines: Main Emphasis
Security & surveillance measures for chemical
installations, and storages.
Intelligence regarding movement of chemicals.
Preparedness for protection, detection,
decontamination & antidotes administration.
Infrastructure development & capacity building for
prompt & effective emergency response to chemical
disaster through rescue & medical response teams.
Community awareness about prevention from
hazardous chemicals.


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National Disaster Management Guidelines
STRENGTHENING OF SAFETY AND SECURITY
FOR TRANSPORTATION OF POL TANKERS
• LEGAL FRAMEWORK
• Constitutional Provisions; Statutory Provisions
• Legal Regime – Paradigm Change in approach
• Pre Bhopal and Post Bhopal legislations
– Explosives Act; Factories Act; The Insecticide Act, 1968: Static & Mobile
Pressure Vessels Rules, 1981
• Environment (Protection) Act, 1986
• Manufacture, Storage and Import of Hazardous Chemical Rules, 1989
(amended in 1994, 2000)
• Chemical Accidents (Emergency Planning, Preparedness and
Response) Rules, 1996
• Motor Vehicles Act, 1988
• Public Liability Insurance Act, 1991
• Environmental Appellate Authority Act 1997

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National Disaster Management Guidelines
STRENGTHENING OF SAFETY AND SECURITY
FOR TRANSPORTATION OF POL TANKERS
• Key features
• Focused on on-site safety of workers
• Legal system to regulate
– Off-site emergency system
– Safe storage of hazardous materials
– Safe transportation of hazardous materials


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Strengthening of Safety and Security
Regulations on POL Tankers
• Strengthening en-route safety and security.
• a) Vendor’s responsibility. `
• b) Vehicle fitness and governing regulations
• c) Defined route and route map to drivers (to be made mandatory)
• d) Training of drivers and cleaners.
• e) VTS: Vehicle tracking system and its installation on all POL tankers
to be mandatory.
• f) Introducing GPS for all POL tankers
• g) Safe parking places en-route and resting places for crew.
• Safety and security of Destination
• a) Need to standardize SOPs for unloading of POL tankers across the
country
• Transport discipline guideline (TDG)


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• The important recommendations to be implemented include:
– Regulatory frame work should address the roles of
occupiers, transporters, drivers and district and state
authorities explicitly for fail safe transportation of POL
tankers;
– Response capabilities of hospitals, fire services and police
on transportation routes especially in mofusil towns should
be strengthened;
– More emphasis should be given to maintenance of safety
features in POL tankers;
– National tanker registry should be developed;
– Tracking of POL tankers through GPS and VTS should
be compulsorily adopted;

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• The important recommendations to be implemented include:
– DDMA should have a cell for transportation of POL
Tankers
– Separate data base of petroleum products should be created;
– Emergency response guide for transportation of POL tankers
should be prepared;
– Efforts should be made to designate and train community
leaders on prominent highways for down the line training of
communities enroute and;
– Safety documents should be prepared by the occupier/
transporter for vehicle, driver and journey management for
pre, during and post transportation phases.

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Implementation Of Guidelines
• Action plans including onsite & offsite plans being prepared to
handle any chemical eventuality.
• For creating awareness & training of stakeholders, workshops on
Safety & Security of Chemicals & Petroleum Products Storages, Ports
and Transportation Pipelines, are conducted regularly.
• Ten Battalions of National Disaster Response Force are trained and
equipped to handle chemical disaster.
• NDMA in collaboration with states government, industry and other
stakeholders has been carrying out the mock drill to test the plans in
various states.
• Observers are being appointed, any gap noticed during mock
drill are being rectified for further improvement.


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Response To Chemical Emergency
• In case of any chemical eventuality, the first
responders will activate the emergency
functionaries by sending the alert signals to the
fire and emergency services, police, emergency
medical services, district authorities and the
HAZMAT team.
• To ensure prompt & effective response to
chemical disaster for rescue & relief Incident
Command Post will be established.


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Key Issues

3. Leveraging Knowledge Of
Disaster Management To
Prepare Your Chemical Supply
Chain.
4. Integrating It With Supply
Chain For A Better Response.


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3.Leveraging Knowledge Of Disaster Management To
Prepare Your Chemical Supply Chain

• Hazard and Vulnerability Analysis
• Preparedness and risk reduction must be based
on good information and valid assessments of
hazards - vulnerability and capacities.
• The impact of Disasters on the supply chain
• Questions about Geographically-concentrated
& High risk dependencies of supply chains
• Mainstreaming DRR into the Business Process


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3.Leveraging Knowledge Of Disaster Management To
Prepare Your Chemical Supply Chain

• DURING DISASTERS
• Planning for the long term must account for future
major events
• No longer will the stress test of the supply chain
simply evaluate component suppliers, distributors,
and other near- or long-term issues associated with
quality, capacity, and financial viability.
• Instead, companies must look even deeper into the
"suppliers of the suppliers" as to where raw
components are manufactured, in order to add
another level of risk assessment.
http://www.ebnonline.com/author.asp?sectio
n_id=1096&doc_id=205566

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4. Integrating It With Supply Chain For
A Better Response
• Integrating Disaster Management Framework
With Supply Chain For A Better Response
• Incident Response System (IRS) Framework
• Issue of Guidelines on Incident Response
System (IRS) Framework


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Disasters offer a unique opportunity to
learn where we have gone wrong….

Preparedness and Mitigation of Disasters is
the most important part of Disaster
Management while strengthening our
response capabilities


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Impact of Disasters on Supply Chain
• Japan disaster impacts supply chain
• The aftermath of Japan's earthquake has left the electronics supply
chain struggling with production stoppages and shipment delays of
electronic components and raw materials supply.
• Shin-Etsu is a major wafer silicon supplier to DRAM suppliers Hynix,
Elpida and Rexchip.
• Hynix’s demand can be met by other plants and suppliers, and both
Elpida and Rexchip, which get a large share of supply from the
impacted plants, have started to negotiate raw wafer purchases
from other vendors. Both have one month of inventory level.
• Samsung and Micron will not be impacted by the potential wafer
shortage. Samsung has five other raw wafer suppliers in the U.S.,
Japan and Korea, while Micron’s supply comes primarily from the U.S.


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• Japan Disasters Severely Disruptive to Supply
Chains
• Due to the recent disasters in Japan, companies like
Toyota, Honda, Chrysler, Sony, Toshiba, and H&M
were forced to suspend operations in some of their
plants in Japan and other countries. Chrysler cut
overtime at plants in Canada and Mexico just to
conserve parts. As the world’s third-largest
economy, Japan’s suppliers are vital to many supply
chains, so the disaster’s impact is felt by industries
around the world.


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• Three key characteristics of supply chain design that
impact the severity of a disruption: density, complexity and
node criticality.
• Supply chain density refers to the geographical spacing of
nodes, or suppliers, within a supply chain. A dense supply chain
is one with nodes clustered closely together.
• A complex supply chain has many nodes and accompanying
flows. Companies’ global-sourcing initiatives have made supply
chains more complex.
• Node criticality describes the importance of a node within the
supply chain. A few characteristics of critical nodes are access to
scarce resources and heavy product flow, like a seaport. The
more unique capabilities a node has, the more critical it is.

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• “If we look at Japan, we see that all three of
these characteristics are present”.
• “There are a lot of sources in supply that are in
close proximity. They have unique suppliers that
are critical to such industries as electronics and
automotive and the fact that they are in a global
supply chain means more complexity.”


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• How companies bounce back from these
disruptions depends on how resilient their supply
chains are.
• Companies should have flexible processes in
place and redundancy in the supply chain to
protect themselves from the dangers of node
criticality.
• “If a company put mechanisms, contingency plans
and processes in place and identified alternate
sources of supply prior to the disasters, then
they may bounce back more quickly”.
http://research.smeal.psu.edu/news/japan-disasters-severely-disruptive-to-supply-chains

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The Long Haul: Learning from Disaster
Companies Measure the Effects of the Japan Disaster
• The widespread effect of this disaster on many industries’
supply chain revealed significant flaws in the general
business trend of lean production.
• One of the most criticized practice is the “just in time”
inventory delivery solution utilized to keep costs down.
• Now as manufacturers scramble to find parts in the wake of
disaster, this cost saving measure has proven to be a very
expensive mistake.
• Additionally, many large companies’ habit of utilizing one
geographical area to house major industry factories is
being pointed out as foolish and risky. These practices
were focused on profit and leaner production techniques but
made companies vulnerable to supply shocks.
http://www.supplychaindigital.com/sectors/the-long-haul-learning-from-disaster


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The Long Haul: Learning from Disaster
Companies Measure the Effects of the Japan Disaster

• Economists now strongly encourage safety net
measures such as ensuring that supplies come
from different geographical areas to minimize
interruption risk.
• Currently electronics suppliers in Taiwan and
Southeast Asia are getting hit with a surge of orders
due to Japan’s factory shutdowns. Additionally,
pressuring companies with monopolies on vital
parts to extend production sites to more than
one geographic area would help to minimize
risk.
http://www.supplychaindigital.com/sectors/the-long-haul-learning-from-disaster


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• Japan disaster impacts supply chain
• Shin-Etsu’s Shirakawa plant, which is
responsible for 20 percent of global silicon
semiconductor wafer supply decided to set up
production systems at other facilities


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Lessons from Japan…
• Need for investment in a better geographical
favoured locations.
• Where companies were trying to establish
strong long term relationship with suppliers,
they must now have a strategy of utilizing
multiple suppliers in order to minimize their
risk.
• Need for a stronger supply chain that is
diversified across many geographical areas.
• Dual sourcing
http://www.ebnonline.com/author.asp?section_id=1096&doc_id=205566


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5. Developing A Collaborative Approach
With Stakeholders
• Why Collaboration Matters?
• Supply chain collaboration helps companies
innovate and adapt more effectively which
make it especially important in a Value of
learning as a critical element of collaborative
relationships


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Optimising Collaboration

• Customer-focused businesses need an accurate picture of
demand to drive production, inventory, distribution, and
buying plans across their operations.
• Good collaboration can prepare for possibilities and
overcome the challenges.
• Building the trust as the first step
• Designing a supply chain structure to ensure the
smoothly flow of information in your organisation
• Gaining accurate and first hand information for demand
planning by communicating with your suppliers and
customers.


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The Next Dimension of Collaboration
• Exploiting web-based technology to drive the use of collaboration to
strategically transform the supply chain.
• "Significant efficiencies can be gained by linking the supply chain and
removing unnecessary inventory, variation and cost and dramatically
reducing cycle times to create an extended enterprise.”
• There is a tremendous sharing of information across the entire supply chain.
• There's visibility and access to information
• Real time responsiveness and collaboration outside the physical walls
of the enterprise are the new areas for value creation.
• Whether through new technology or through more established ways of
communication and collaboration, the Strategic Partnership Process opens
an opportunity to bring new ideas.
• Define your business not just as “Supply Chain Management” but as
Dynamic Supply Chain Relationship.”


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6. The Critical Role Of Supply Chain In
Managing Disasters.
• Relief Logistics:
• Humanitarian Logistics in emergency relief is the management
of humanitarian emergency relief supplies from source to the
beneficiaries efficiently and effectively.
• The basic task of a logistics system is to deliver the
appropriate supplies, in good condition, in the quantities
required, and at the places and time they are needed.
• Although mostly concerned with the movement of goods and
equipment, relief logistics also encompass the relocation
of disaster-affected people, transfer of casualties, and the
movement of relief workers.
• UN OCHA…
• NDMA “National Disaster Resource Network”…


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Managing Disasters.
• Supply Chain Issues in Disaster-Management
• The key issues existing in the current supply chain
initiatives for disaster management can be
summarized as follows:
– Lack of planning leading to supply chain break downs
– Setup of new supply chain for each disaster
– Limited short-term supply of relief through the make-
shift supply chain
– Inefficiencies due to insufficient and inaccurate
information
– Focus on donors rather than recipients
http://www.coolavenues.com/know/ops/madhuker-varun-supply-14.php


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Supply Chain Issues in Disaster
Management
• A supply chain, or supply network is a coordinated
system of organizations, people, activities,
information and resources involved in moving a
product or service in physical or virtual manner
from supplier to customer.
• Customers in this case are people facing the
crisis. They formed the focus of the entire supply
chain development.
• Underlying principles behind the whole supply
chain is centralized control and decentralized
execution.

http://www.coolavenues.com/know/ops/anusha-supply-14.phpLOGICHEM ASIA 2011-SUNIL KOHLI INDIA

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Management
• COMPONENTS OF RELIEF CHAIN
• 1. Planning & Preparedness: During Pre-disaster, proper planning and
preparedness for logistical procedures and activities must be done.
• 2. Assessment: Assessment comprises of activities like, preparedness
planning, survey and data collection, interpretation and forecasting, reporting
and monitoring.
• 3. Resource Mobilization: Human and financial resources need to be
mobilized by various humanitarian organizations.
• 4. Procurement: Procurement which is emergency supplies can be done
locally or globally and can be acquired in different ways such as in bulk or
stored at the vendor until needed.
• 5. Transport: Transportation involves shipment, logistics, transport, etc.,
through which the goods are brought into a country at an entry point and
then moved to collection sites run by relief organizations.


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Management
• COMPONENTS OF RELIEF CHAIN
• 6. Tracking & Tracing: It means keeping track of what has been ordered, promised,
things on its way and already arrived, etc.
• 7. Stock Asset Management: The stock should be inspected and accounted, and if
there is any flaw should be sent back.
• 8. Extended Point of Delivery & Relief to Beneficiaries: An extended delivery
point is an inland destination close to the affected area where goods can be staged
before the final distribution of relief to beneficiaries. Finally, distribution should be
carried out in proportion to the requirement and all the affected gets there share.
• 9. Monitoring, Evaluation & Reporting: During implementation, monitoring and
evaluation create the information base for decision making. It is also used to formulate
conclusions and recommendations for the supply chain.
• 10. Communication & Collaboration: In disaster, setting communication is quite a
difficult task, but quite helpful. Between different agencies working for relief should
have proper cooperation.


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Managing Disasters.
• Identification of Existing Critical Resources
• Establishing Critical Reserves
• Virtual Inventory Through Contractual Agreements: Reduces
physical inventory while maintaining quality and speed of delivery.
• Ten Battalions of NDRF would collect inventory based on the
contractual agreements (for food, medicines, clothes etc).These units
are at the focal points across the geography and based on Mapping of
potential risks in the geography.
• A country like India has threats of:
– Earthquakes In The North, NE & West;
– Landslides In The North & NE;
– Floods In The East And
– Tsunami In The South.
• Vendors Managed Inventory (VMI)
• Using Existing inventories of Stakeholders

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Management:
• Implications
• This arrangement forms a backbone supply chain
that ensures speed, quality and continuity of
relief material to the disaster affected area.
• The mainstream operations remain the same
irrespective of the nature of disaster.
• Only the relief operations at the site of the disaster
vary with respect to the natural calamity.
• Hence, on repeated setups and functioning of this
supply chain, it is easy to increase the efficiency of
such processes.


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7. Logistics is a key professional element
in successful disaster management
• Adopt SCM / Logistics Best Practices
• Time is critical element
• Cut Administrative and Procurement Lead Time
• Overcome Disruption of Supply Chain
– Redundancy
– Multiple Sources
– Indegenisation


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Management
• An agile supply chain in such a scenario
minimizes time for procurement and delivery of
essential supplies. It helps bringing the situation
under control by quick response for relief
measures. Supplies of food, medicines and
clothes need to reach the affected people in
minimum time. Simultaneously the quality and
speed of information flow must also be of
acceptable standards.


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Do we really need to study disaster
supply chains?
• The timely delivery of critical goods has always been a
crucial element of an effective disaster response, but an
effective disaster supply chain is hard to create and
maintain.
• Disaster and crisis pose the special challenges.
• “Disaster Barriers”—the political-administrative factors
that make it hard to organize an effective response.
• The most pertinent challenges: the coordination of actors
in providing humanitarian relief.
• What can be learned from general supply chain
coordination mechanisms in order to enhance the
coordinative capacity of disaster supply chains?


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8. Using information and technologies to
speed-up response and decision making
• National Resources Networks
– India Disaster Resource Network (IDRN)
– Corporate Disaster Resource Network (CDNR)
– India Disaster Knowledge Network (IDKN)
– Response Net
• Adopting GIS Technologies


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INDIA DISASTER RESOURCE
NETWORK (IDRN)


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CORPORATE DISASTER
RESPONSE NETWORK

http://www.cdrn.org.in/

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CORPORATE DISASTER
RESPONSE NETWORK
• Corporate Disaster Resource Network (CDRN)
is a web based supply chain management system
that helps Relief agencies, Response agencies
and Local governments access and feed in real
time information on products and services
required for emergency humanitarian relief.
• http://www.cdrn.org.in/


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INDIA DISASTER RESOURCE
NETWORK (IDKN)


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RESPONSE NET


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Key issues
• Evolving an Efficient Supply Chain for
Preparedness, Relief & Rehabilitation:
• Strategies to involve Industry, Government,
Developmental Agencies and Civil Societies in a
coordinated way to meet relief and rehabilitation
challenges.
• Transportation and Coordination challenges and
ways to bridge them.
• How to ensure the availability of resources and
securing the continuity of the supply.


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KEY ISSUES
• Mainstreaming of Disaster Management into the
Development Process.
• Mainstreaming the Paradigm Shift of Mindset.
• “It's just not in our culture to be prepared
• “There's a gap between policy and practice. India
lacks the rigorous assessment procedures.
• Three Crop seasons…& Relief
• Empowerment of citizens with INFORMATION. (RTI
Act)
• Capacity Building, Sensitization of People, Mock Drills,
Gap Analysis, Standardization, Guidelines, SOPs and
Legislation.
• Overcome Fatalistic Attitude.


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Key Challenges
• The cultural change is by far the biggest challenge.
• Adoption of a common risk understanding, language
and methodology.
• Top management must prioritize risk and
governance, and integrate it into the company
strategy and objectives
• Market Dynamics Necessitated Changes
• Attitudes Towards SCM Changed
• Leveraging Human Resources (People Development) a
Critical Element
When optimizing for the whole, you sometimes are not going to be as efficient in the parts.

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Key Challenges
• Breaking Corporate Inertia
• Instilling an environment where all parts of the
organisation are risk-confident.
• Being creative about how to communicate about
the framework is important, and the
communication has to be continual and
changing.
• Continue to adapt, learn and be proactive.


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Key Challenges
• Overcoming “DRIP” Syndrome (Data Rich Information
Poor) for real time insight analysis.
• Adoption of “C3I2” approach for better Accountability.
– Coordination;
– Communication;
– Collaboration;
– Integration ; and
– Implementation
• Make it a Nature to be Natural with Nature.
• Every Second count: Every Life matters.


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THE WAY AHEAD
• Robust Planning. “Failing to Plan is Planning to fail.
• Transparent and Rigorous Systems and Procedures
• More Transparency: Increased Public Awareness on
Real time Basis. Need for better Public Private
Partnership.
• Need for Strong Institutional Response
• Strengthen the credible Regulatory Framework
• First Line of Defence: Community, NDRF /
SDRF, Civil Defence, Fire & Emergency Services.
• Last Line of Defence: Armed Forces


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Key Take Away
1. Stitch in Time…..
2. Don’t put all eggs…
3. Biggest risk in life is not to take risk
4. Robust Planning. “Failing to Plan is Planning
to fail.
5. Create a resilient global supply chain.


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Natural Disaster/Emergency Planning:
Supply Chain Tips to Better Weather the Storm

• What can importers and exporters do to prepare better
for natural disasters, port strikes, and other factors
beyond their control?
• What emergency planning considerations should be in
place to better ensure that a company’s supply chains
operate in tough times?
• How can manufacturers and retailers better weather the
storm?
• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=
1129120594922


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• Assess Risk. In making your initial sourcing and fulfillment decisions
concerning where to buy product, where to manufacture product, where to
locate distribution centers and what ports to use, consider the following risk
items:
– Political risks of the country
– Physical and geographic risks
• Availability and proximity of primary and alternative logistics networks for all modes (air, ocean, rail
and truck)
• Historic weather/natural disasters
• Labor union action
• Infrastructure (power grids and backups, water supply, etc.)
– Economic and market risks
• Fuel prices
• Currency exchange
• Inflation
• Running different scenarios of best case, average case and worst case begins
to get the organization thinking through how they would handle normal
variability and disasters alike.
• http://www.jpmorgan.com/cm/ContentServer?c=TS_Content&pagename=jpmorgan%2Fts%2FTS_Content%2FGeneral&cid=1129120594922


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• Running different scenarios of best case, average case and worst case begins
to get the organization thinking through how they would handle normal
variability and disasters alike.
• Establish a team that will be responsible for the decision making during a
crisis and ensure that is communicated throughout the supply chain. Often
times the communication channels break down and a lot of people will act
and react on their own — thinking that they are doing the right thing —
when in fact it may hurt the overall plan.
• Don’t put all of your eggs in one basket.
• Develop and use on an ongoing basis alternative relationships with
suppliers and logistics networks.
• Use the services of multiple carriers at all times who use different ports
of dispatch. This provides the ability to control costs and service levels in
normal times and flexibility in times of high demand or disaster recovery.
• Have the ability to diversify transportation. Transportation routes may be
disrupted so it is important to have alternate means of transportation.


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• Demand disaster plans from your suppliers and logistics
providers, then review and update these plans on a regular basis.
• Test the alternatives presented by your suppliers and logistics
providers. By conducting such an audit, you will see their level of
preparedness.
• Make detailed processes, procedures and authorizations readily
available for dispatch to new brokers who are being used in an
emergency as a result of diverted cargo arrivals.
• Constantly monitor each country/region for threats and
trends which will impact your supply chain: Weather, port and
transportation strikes, fuel prices, currency exchange, inflation,
labor rates, pending legislation (i.e., trade sanctions, quotas, anti-
dumping duties, Free Trade Programs), political elections that
may alter the country's view of trade.

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• Analyze your products. Understand how demand for your
products will be affected by the emergency.
– For example, before Hurricane Charley, Home Depot and Lowe’s each created a
war room to monitor the storm. By doing so, they were able to supply specific
stores with plywood, generators, water and medical supplies, before the storm hit.
• Develop a flexible supply chain that is able to capture the
large fluctuation in demand.
– If your products are needed in case of an emergency, make sure your supply chain
has the capacity to keep up with a large increase in demand. If your products are
not needed and demand drops, make sure that the pipeline can be slowed down to
avoid a build up of unnecessary inventory.
• Have a solid cross-trained workforce that can react fast.
– If part of your supply chain is directly affected by the disaster, it is important to
have people that can keep the operation running as best as possible.


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• Be prepared to avoid certain regions during certain months.
For example, Florida ports are subject to hurricanes from June
to November. For products destined to Latin America and the
Caribbean that gateway out of Florida, carriers, distributors and
exporters should have alternate gateways with rates and
frequencies established. Perishables or other time sensitive goods
may need to exclude South Florida ports from their distribution
networks through the more hectic hurricane season months of
August, September and October.
• Use customs facilities that enable clearances to be obtained and
finalized at a location other than the port of entry. By doing so,
this provides opportunities to avoid port congestion.


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• Back up your files. Ensure that all trade-related
documentation — especially documents that
require keeping for five or seven years, depending
upon the regulatory agency — is backed-up/saved
in electronic format somewhere offsite. If all
records are lost in the actual site, they are easily and
readily obtained from a different location.
• Conduct a risk assessment of your existing
supply chain. If you are uncertain as to how your
supply chain will hold up in times of trouble, hire
outside global trade experts to assess risk and help
strengthen your supply chain.
922


SUNIL KOHLI
Indian Defence Accounts Service
Joint Secretary And Financial Adviser
National Disaster Management Authority (NDMA),
and National Disaster Response Force(NDRF),
Government of India, Ministry of Home Affairs, India
# A-1, Safdarjang Enclave, Opposite AIIMS Trauma Centre,
New Delhi 110 029
Tel: +91 11 26701709 Office
+91 11 26180503 Direct
+91 11 26701715 Fax,
+91 11 26133298 Residence
+91 9868151472 Mobile
E Mail: kohlisk@gmail.com
kohlifandma@gmail.com
skkohli@ndma.gov.in
Website: www.ndma.gov.in
FACEBOOK: http://www.facebook.com/sunilkumarkohli

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“Examining The Role Supply Chain Best Practices Can Play In Disaster Management”

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