SCRS Conference Day 1 Session #7
NextGen Manufacturers: Securing Business Continuity Through Risk Assessment and Supplier Collaboration
By Mr. Erek Zhou, Senior Regional Security Manager, Greater China, Dyson Technologies
In the dynamic field of next-generation manufacturing, securing business continuity through effective risk management and robust buyer-supplier collaboration is essential. Mr. Erek Zhou, Senior Regional Security Manager at Dyson for Greater China, provided an insightful presentation during Session 7 of the Supply Chain Resilience and Sustainability (SCRS) Conference 2024 on June 25. He highlighted the importance of robust risk assessment and effective supplier collaboration in ensuring business continuity for next generation manufacturers and provided valuable lessons for industry leaders striving to navigate the complexities of today’s global supply chains.
SCRS Conference is a two-day annual trademark event organized by the Transported Asset Protection Association Asia Pacific (TAPA APAC) that gathers industry leaders around the region to discuss pressing issues and strategize for greater supply chain resilience.
Buyer-Supplier Relationships and Diversified Supply Chain Network
Erek commenced with an insightful overview of Dyson’s supply chain roadmap and analysis, focusing on impacting factors from start to end points, such as impact to capacities, label leakage, market demands, and some external threats such as chip shortage. Partnership with logistics suppliers, including brokers, carriers, and IoT solutions, plays a pivotal role in enhancing visibility and coordination throughout the supply chain. However, he also acknowledged the various challenges that accompany this process which businesses must note, such as geopolitical issues, regional conflicts, and natural disasters.
Erek emphasized the critical role of BCP in maintaining robust buyer-supplier relationships. He showcased Dyson’s strategic approach to networking with external manufacturers worldwide, ensuring operational resilience. “We work with external manufacturers around the world to ensure if one manufacturer is affected, other external manufacturers partners can still operate for Dyson,” Mr. Erek explained. This diversified network is a key strategy for Dyson, allowing them to mitigate risks associated with potential disruptions in the supply chain. Additionally, Dyson’s focus on localization involves collaborating with private companies to gain local market insights and adaptability.
Integrative Supplier System for Visibility and Brand Protection
From a global perspective, Mr. Erek underscored the importance of an integrative supplier system to categorize suppliers into different tiers, with each tier having specific roles in the supply chain. For example, Tier 1 suppliers handle final assembly, while Tiers 2 and 3 focus on different aspects of production. This tiered system ensures a structured and reliable supply chain that can adapt to various challenges.
Additionally, Erek recommends that businesses work with various organizations like TAPA to audit and implement robust standards across the supply chain. It is also important for manufacturers to have an end-to-end visibility system to monitor the movement of valuable materials, finished goods, and the scrapping process. By maintaining comprehensive visibility and monitoring, companies can safeguard their products and maintain a competitive edge in the market.
Ensuring Resilience through Strong Governance, Backup and Insurance
Erek stressed the importance of individual supply chain management and the need for strong organizational governance and leadership endorsement among suppliers. “If you only work with your supplier or auditor, it’s hard for them to implement the standards and make necessary influence inside without the involvement of organizational governance, leadership, and a special task force,” he explained. He emphasized the necessity of always having a Plan B, advising businesses to “help your supplier to identify the buffer and strategic code.” While daily operations are crucial, buyers should also request additional investments to broaden insurance coverage, ensuring all suppliers have policies in place for potential loss or property damage. Seeking alternatives outside the current vendor pool is another strategy, providing a backup plan in case of disruptions. This multifaceted approach ensures a resilient and adaptable supply chain.
Risk Assessment and BCP in Buyer-Supplier Relationships
Erek highlighted the necessity of comprehensive risk assessment and BCP to ensure the sustainability of critical business processes. He began by emphasizing the importance of conducting a thorough business impact analysis to identify different risk types and their probabilities. “In the event of a crisis, you need to be prepared to rewrite the supply chain and shipment strategies. Is it quick to implement the strategy?” Mr. Erek asked, pointing out the inevitability of certain risks. He stressed the need for clear liability allocation within the supplier network, from the perspective of both buyers and suppliers, to facilitate risk transfer through insurance.
Furthermore, Erek discussed the multi-entity implementation of BCP, noting the potential losses or gains based on each entity’s capacity. He highlighted the importance of mutual assistance during challenges, such as sharing resources and intelligence in response to natural disasters. He said, emphasizing the need for a well-defined supplier network and strong inter-supplier relationships, “You must be clear about who is critical and if a supplier is replaceable.” Addressing the dependency between suppliers, he remarked, “Pricing quality must ensure that emergency provisions are included because sometimes your supplier would only provide the lowest quotation without the additional investment in BCP and physical deployment.” He also stressed the importance of IP and data protection and the need for robust insurance practices to expose gaps and mitigation plans. “Look for the best premium of insurance,” Erek advised, urging organizations to introduce their practices and continuously improve their BCP strategies.
Leveraging TAPA Standards and Networking for Enhanced Supply Chain Resilience
Erek’s keynote underscored the essential elements of risk assessment and business continuity planning for next-generation manufacturers, emphasizing the need to secure increasingly complex supply chains and ensure business continuity. In this evolving landscape, TAPA APAC plays a crucial role by offering robust resources through its TAPA Standards, which provide a comprehensive framework for securing supply chains and mitigating risks. Beyond standards, TAPA APAC also fosters a dynamic network of members, creating invaluable opportunities for collaboration and partnership. By engaging with fellow members, companies can identify potential business partners and suppliers, thereby enhancing their supply chain resilience and long-term sustainability.
To know more about TAPA Standards and TAPA APAC membership, visit www.tapa-apac.org or email info@tapa-apac.org for further inquiries.
About the Speaker
Mr. Erek Zhou
Senior Regional Security Manager, Greater China
Dyson Technologies
With over a decade of experience in the security industry, spanning six years in managerial positions, Erek has actively participated in various facets of security operations. His expertise encompasses ground operations, SOC management, investigations, executive protection, emergency management, supply chain oversight, and project management. In his capacity as a seasoned corporate security head for the Greater China region, Erek demonstrates proficiency in implementing comprehensive security strategies and fostering close collaborations with stakeholders.