TT Talk - Incident response

Managing supply chain operations is a complex endeavour that involves innumerable risks to the security and integrity of cargo and, not least, to the health and safety of the workers involved. Unexpected events or accidents may disrupt even the best laid plans, sometimes leading to catastrophic results. When crises occur, it is important that the operation responds promptly and effectively to mitigate any risk to cargo or equipment and to ensure the safety of the workers. This article will discuss supply chain incident response.

Expect the unexpected

A well-run operation may experience a crisis only rarely and managers may have few opportunities to gain practical experience of incident response. Creating a crisis management plan provides an opportunity under business-as-usual conditions to develop an essential framework of response. It is important that roles and a chain of command are defined so that individuals understand what will be expected of them within a defined hierarchy. Communication should form part of each of these roles. For example, it may not be advisable for the incident lead to bear responsibility for all communications, as this may interfere with decision making. Rather, communication could be delegated to one or multiple deputies, enabling the lead to maintain control over the incident. Contact information required to fulfil communication functions within the team should be maintained and updated regularly.

It should be noted that different types of incidents may require team members to respond differently. For example, responding to a major security incident, a fire or an incident involving a personal injury requires very different actions. It may be beneficial to define incident response procedures for multiple types of incidents, including steps to investigate each type.

Define stakeholders

Supply chain operations involve many different stakeholders, and an incident may impact on these stakeholders as well as the core operation. It is important to identify at the outset of an incident who are the various stakeholders and define a communication plan for each. Stakeholders may include an injured worker and their family, a cargo owner, equipment or property lessor, a contractor or subcontractor, a government regulator or a different operation within the supply chain. Each stakeholder will require a certain level of information and investigating the incident may require information from the stakeholder. Managing these relationships effectively is a key part of managing the incident.

Managing communication is key. Many organisations have professionals on hand with expertise in safety or security with the ability to advise following an incident. The incident response plan should outline an escalation procedure to bring in expertise where warranted. Regardless of the type of incident, one of the most important stakeholders is the insurer, and keeping the insurer apprised as the incident develops can be a key component of incident response. The insurer may want to act quickly to appoint a surveyor, legal counsel or to claim a particular legal jurisdiction, and delays in notification often prove costly.

Some incidents may involve managing the press or members of the public who may want to film or photograph the incident. Larger organisations may have a public relations department that can support during times of crisis. It is important that notification of this department forms part of the communication plan. Smaller organisations may lack support with public relations but should nonetheless anticipate and plan how to respond to questions from the press.

Control the scene

Maintaining control of the scene of an incident can be challenging, particularly in cases where someone has been injured and emotions are running high. External factors such as the weather may impede control. Delaying certain events, such as the departure of a ship or a train, might be prohibitively costly. In most jurisdictions, it is not legal for a private company to detain individuals, including employees of the company, should they choose to leave the site. Where the incident has occurred on public land, it may fall to the police or other authority to assume control of the scene.

Nonetheless, to the extent possible, it is advisable to protect the scene of an incident. In part, this is to prevent the occurrence of any further incident until the risks involved are better understood and the workplace can be made safe and secure. It may be necessary to take specific action to avoid environmental harm. In particular, incident managers should lock down the use of any vehicles, machinery or equipment involved in the incident. It can be helpful to photograph and video the scene of the incident for later reference. Photographs of injuries can also be very helpful to investigators, though it may be necessary to obtain the consent of the injured party.

Gather information

Supporting documentation may prove decisive when defending a claim. The best time to prepare for this stage of incident response is long before an incident has occurred. Properly maintained employee training and induction records, maintenance and equipment pre-use check documentation and records of vetting procedures followed are invaluable when compiling investigation materials. Witnesses should be interviewed promptly following an incident before memory of the event fades and CCTV footage should be downloaded and saved before it overwrites.

Often claims do not emerge until long after an event has occurred. Consequently, operators are advised to treat serious near miss incidents seriously and to complete full investigations, including root cause analysis. Although it is time-consuming, preparing a full investigation serves to inform future risk management as well as protect the business against future claims. A methodical approach to root cause analysis, can aid efforts at reducing the risk of future similar incidents. Where appropriate, businesses should consider, in addition to mandatory reporting to regulatory bodies, voluntary reporting of data to industry bodies, such as those that compile industry safety, near miss and crime statistics. Many businesses rely on intelligence gathering services to inform decision making and risk management strategies.

Summary

Effective incident response in supply chain operations is essential to mitigate risks and ensure safety. Key practices include establishing a crisis management plan with clear roles and communication strategies, developing specific procedures for various incident types, and identifying and communicating with stakeholders. Controlling the incident scene and gathering comprehensive information are crucial steps. By adhering to these good practices, organizations can manage incidents efficiently and minimize disruptions.