Talk about your specific responsibilities as they relate to supply chain It starts with procurement then works its way through manufacturing distribution and transportation as well as our capital program which is our investment program around the world and our facilities Part of my responsibility is to ensure that we have product available to sell in all of the major markets in which we do business So the risk associ ated with that and protecting our product supply from risk whether it s global risks environmental or political or physical risks that could present themselves in our factories and distribution centers Let s talk about specific risks What are some of the chief risks you re concerned about The risks that our FM Global program directly addresses are around our physical property and ensuring that our facilities are operable 24 7 There are some risks that fall outside that scope as well You know we source from just about every country around the world Spices come from countries close to the equator Not all of them are the most stable political environments so that s additional risk we have I really focus on keeping our principal facilities operational and protecting the assets that we have deployed around the world I call those actually our controllable risks And that s specifically what the FM Global program addresses for us Can you talk about the engineering services at FM Global and how it has served McCormick s business strategy Yeah it s one of my favorite questions and it leads to one of my favorite anecdotes about FM Global I would actu ally challenge anyone to sit in the planning meetings we have with FM Global and McCormick Resources and to quickly determine which company each person works for The FM Global engineers have strong relationships with our factory management with our engineering department and they really are an extension of our own resources We re convinced that they have our best interests at heart when they visit any of our facilities and recommend improvements In fact they have actually offered more economical solutions to some of the issues that we were try ing to engineer on our own So that engineering service is invaluable as far as I m concerned Can you talk briefly about the global services engineering function Moving into markets around the world and some of these markets in places where we haven t done business before at least from a manufacturing standpoint FM Global had to move with us And what we have found is the network of resources that are available around the world have been invaluable to us particularly since our entry point into these countries is through acquisition And we ve used FM Global services to help us in our due diligence process Can you name a specific situation where you can describe what you just explained A specific example of using global services was an acquisition that we made in China Now we have been doing business in China for more than 25 years but there was a large acquisition target that we identified a few years ago And we brought FM Global resources into that target to be part of our due diligence team and make recommenda tions on what we would need to do to bring that facility up to a highly protected risk status What that then allows us to do is to build those efforts into the acquisition model so that we know exactly what we need to invest and how long it will take to bring it to an acceptable level of risk Have you had a loss that you could share One story I like addresses how to view recommendations and the value of those recommendations in our facilities We have a facility in England that unfortunately experienced an electrical room issue We actually had a fire in an electrical distribution room And long story short that facility was back and operational within 24 hours So one of the questions I got was If this was a highly protected risk how did it have a fire And I answered Well because it was a highly protected risk it endured that and was able to get back up and running within 24 hours It was the recommendations that kept it contained that kept the rest of the building operational and allowed us to recover very very quickly more quickly than if we hadn t completed the recommendations made in that location ISSUE 2 2015 REASON 35

Hinweis: Dies ist eine maschinenlesbare No-Flash Ansicht.
Klicken Sie hier um zur Online-Version zu gelangen.