Supply security
Our approach
Many threats and challenges arise in today’s business world and it is essential for companies to be prepared. To strengthen Jungbunzlauer’s ability to avoid interruptions and disruptions in production and to ensure that we can act rapidly in crisis situations and thus facilitate continuous supply to our customers, a Business Continuity Plan has been incorporated in our corporate strategy. This plan helps us to be prepared and continue to operate in the event of economic changes, incidents and crisis events, all of which could affect our production and thus the security of supply to our customers.
Since robust risk assessment is the basis for a successful Business Continuity Plan, this has been carried out for all our production sites. Business Continuity Management offers a structure for an effective response in emergency situations and therefore helps to minimise damage to the company, stakeholders and customers. Different departments, such as operations or IT are responsible for different topics of Business Continuity Management.
An analysis has been performed to identify the most relevant risks and response plans have been implemented.
Our ambition
Issues in our supply security can harm not only the company’s assets, but also its reputation and brand. It is therefore indispensable for businesses such as ours to analyse potential risks, which could compromise the security of supply to our customers. It is of the utmost importance to us at Jungbunzlauer that we are a reliable business partner able to guarantee secure supply of our products.
Key measures and evaluation
Aspects and procedures of the Jungbunzlauer Business Continuity Plan are documented and reviewed regularly by all responsible parties (Management Committee).
Did you know?
A new state-of-the-art warehouse management system was implemented at our production site Ladenburg, Germany.
| Measures | Targets 2021 | Progress and achievements 2021 |
|---|---|---|
| Risk assessment and "Business Continuity Plan" | Update of Business Continuity Plan | Update of chapters logistic, IT systems and pandemic disease |
| Incident management with respect to business continuity | Maintain secure supply to our customers and fulfil contractual agreements | During the reporting period, 2021, a crisis situation regarding business continuity has occurred. While the corona pandemic disrupted supply chains world- wide and increased demand in many of our products, we managed to keep almost all our contractual agreements and did our utmost to support our customers with additional material needs. We made sure to keep close contact to our customers even though visits in person were not possible |
Relevant risks
Precautionary measures
Raw material supply
We operate our own glucose syrup plants which provide carbohydrate raw material needed to manufacture our products. Thus, we do not rely on third parties for supply security of our main raw material – glucose syrup. Own stock level of corn covers several weeks supply for glucose syrup production. We usually source other crucial materials from multiple suppliers and agreements with different approved suppliers are in place to mitigate the risk of delivery shortages
Energy supply
The risk of a production standstill due to power failure is mitigated through the usage of a mix of own power generation and secured grid power supply. Furthermore, we use innovative technologies like combined heat-power, cogeneration or biogas
Production
Jungbunzlauer production sites are well organised with high safety standards in place. The condition of all crucial equipment and machinery is monitored and supported by preventive maintenance programmes to avoid unplanned outages
Inventory
We have company-owned inventories. Furthermore, product is on stock at our distributors` warehouses. Sufficient stock level of common products is maintained to overcome an adequate period of time. Critical products have been identified and safety stocks are in place
Logistics
Jungbunzlauer works together with several transport partners with whom we have suitable contracts and are in close and continuous relationship. In case of a logistic crisis, e.g. availability problems, we will be in permanent contact with our forwarders and distribution partners to discuss availability of means of transport, transport routes or other problems that could arise in the logistic chain. We will also manage the communication between customers and forwarders to ensure reliable delivery of products
IT systems
Jungbunzlauer’s customer-related business data processing systems (ERP, CRM, Groupware) are hosted on dedicated servers and operated by a professional data centre, having a redundant infrastructure. All intersite data transfer (wide area networking) is encrypted, as are all public-facing IT serve interfaces (web applications, partner connections, electronic data transfer). All business data traditionally stored on computers which leave Jungbunzlauer’s property have to be fully encrypted. Business data (customer-related and personal data) is not allowed to be stored in public cloud services. General security measures (user authentication with periodical changes of passwords, corporate firewall, malware protection, intrusion detection, mail gateway with malware and spam protection etc.) are in place
Pandemic disease
Hygiene standards are defined and regular training including reporting of illness is conducted. Sickness and pandemic policies are in place at all production sites. In case of a pandemic outbreak, all Jungbunzlauer sites and offices will closely monitor the official guidelines/regulations from local government and will maintain and increase safety measures accordingly. Furthermore, some of the above-mentioned measures and precautions will become effective, e.g. pandemic policies. Customers and business partners will be regularly informed about the current situation and measures at Jungbunzlauer
Terrorism
All sites are certified to the FSSC 22000 food safety standard. Food defence, biovigilance and bioterrorism have been taken into account in accordance with Chapter 18 of FSSC 22000 guidelines. Furthermore, we are in compliance with the guidelines of C-TPAT (Customs-Trade Partnership Against Terrorism)
Crisis communication
A crisis unit including crisis contact persons and representatives is defined at each production site. A suitable system for internal communication to employees is established and responsible persons are defined. Rules of conduct are applied. Jungbunzlauer’s production sites work in close cooperation with authorities, thus communication channels are well established. Approved recall procedures including communication flow are established and regularly tested for their effectiveness
All our production sites are located in politically stable countries, making any disruption in production less likely. Additionally, since most of our customers are in quite proximity to our manufacturing plants, the supply is less dependent on complex logistics.
Outlook
Where necessary, we will continue to review and update our risk assessment and Business Continuity Plan on a regular basis. Several capacity expansions are planned in order to assure supply with rising demand in the market. Possible issues arising due to the pandemic will be dealt with on a case to case basis. We will continue to be in close contact with our business partners to manage future concerns such as logistical issues or availability problems.