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23 May 2012 01:17AM

Ready for anything

15 Nov 11 ,  Bangkok Post
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When the red-shirt riots gripped Bangkok last year, the business of Siam Cement Group (SCG) was disrupted, but only for two days. But the May 2010 incident prompted Thailand's top industrial conglomerate to realise it needed measures in place to cope with anything unexpected in the future.

When flooding hit the capital early last month, SCG successfully executed its business continuity management (BCM) plan and has continued to perform well even as some areas in which it operates are flooded or threatened.

 

Three weeks ago, nearly all functions and more than 1,000 Bangkok-based staff of SCG Chemicals Co, wholly owned by Siam Cement, temporarily relocated from the Bang Sue headquarters to its Map Ta Phut office in Rayong. Fewer than 20 sales and customer-service personnel are still working in the capital. Of SCG Chemicals' staff of 4,000, 1,500 are normally based in Rayong.

 

The Rayong office is equipped with desktop computers, notebooks and backup data including contact numbers of customers.

 

For other business units of SCG, mobile offices are operating in Saraburi and Pattaya.

The BCM was implemented as severe flooding affected a significant number of the staff and threatened the safety of its Bang Sue office.

 

Before the relocation, a war room, which monitors the flood situation, was set up in early October at a hotel in central Bangkok. It is still in operation.

 

"We had two staff evacuations from Bang Sue with 50 and 100 people participating, respectively," said Supaporn Chanchamroen, SCG Chemicals' human resource director.

Staff use their laptops more during BCM drills, testing to make sure their aircards are working, she added.

 

Ms Supaporn keeps the contact numbers of the staff in case she has to coordinate efforts to ensure their safety.

 

Globally, BCM emerged as a priority for international companies following the 9/11 terrorist attacks in the United States as they realised they needed to prevent business interruptions.

 

"We have to prepare for anything unexpected to minimise potential loss," she added.

Napit Koonamwattana, SCG Chemicals' business supply chain leader and head of its BCM taskforce, said that following the red-shirt turmoil last May, SCG hired the management consulting firm Accenture to prepare a BCM framework and procedure. It took about seven months to complete.

 

SCG's BCM team, led by the IT and BCM directors, analyses information about flooding routes and the expected amount of water and makes a forecast, she said.

 

The team has a teleconference every day with Cholanat Yanaranop, the president of SCG Chemicals, and the managing director or deputy managing director of every subsidiary to update the situation.

 

"In any critical situation, the BCM will ask business units to come up with different levels of preparation and recommended reactions," Ms Napit explained.

 

Sakchai Patiparnpreechavud, managing director of SCG Plastics, said communication and lines of command are the most important factors amid the crisis. "During a crisis, it must be clear who is in charge so staff do not panic and can still perform their duties," said Mr Sakchai.

 

"If the situation gets so severe the headquarters have to be closed, companies [under the group] can still function under the BCM."

 

SCG employees have also moved their families to Rayong for safety concerns.

 

Its mobile offices will be operational until the end of the month. On Oct 20, SCG closed its Bang Sue headquarters until Nov 25. The group has nearly 35,000 employees.

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