Supply security

It is crucial for our customers to be able to rely on us regarding supply security of safe and specification-conforming products.  

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.

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.

Did you know?

A yard management was implemented at our production site in Austria allowing the logistics processes to be optimised.

Key measures and evaluation

Own disclosure: Number of incidents with respect to business continuity.
Aspects and procedures of the Jungbunzlauer Business Continuity Plan are documented and reviewed regularly by all responsible parties (Management Committee).

Measures Targets 2020 Progress and achievements 2020
Risk Assessment and Business Continuity Plan Update of Business Continuity Plan Update of Business Continuity Plan with addition of a section on “logistics”. Section “pandemic disease” was updated and refined.
Incident Management with Respect to Business Continuity Maintain secure supply to our customers and fulfil contractual agreements During the reporting period, 2020, a crisis situation regarding business continuity has occurred.
While the corona pandemic disrupted supply chains worldwide and increased demand in many of our products, we managed overall to keep 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 use of a mix of own power generation in the various sites and different supply lines that provide secure grid power to the production plants.

Production

Jungbunzlauer production plants are well organised and high safety standards are in place. The condition of all crucial equipment and machinery is monitored and supported by preventive maintenance programmes to avoid unplanned outages.

Inventory

We carry sufficient inventory at company-owned and distributor warehouses around the world.

Logistics

We work together with several transport partners with whom we have suitable contracts and are in close and continuous contact. In case of crisis, we will be in permanent contact with our forwarders and distribution partners we will manage communication with customers and forwarders to ensure reliable delivery of products.

IT systems

Customer-related business data processing systems are hosted on dedicated servers, operated by a professional data centre, having a redundant infrastructure. All intersite data transfer and public-facing IT server interfaces are encrypted. General security measures are in place.

Natural disasters

Emergency plans and evacuation procedures are in place in case of fire or flooding. Alarm systems and firefighting measures are in place at all production sites.

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 governments and will maintain and increase safety measures accordingly.
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.

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-by-case basis. We will continue to be in close contact with our business partners to manage future concerns.