loaded and shipped to Singapore and then transloaded again and shipped from Sin gapore to Baltimore three legs in all that require coordination and oversight And that s just for cinnamon Many of the other spices come from various ports in India and those spices make several other stops on the way to Baltimore Of course for a vast organized multinational like McCor mick while the modern day spice routes do pose problems it s nothing they can t handle The challenges with McCormick s global expansion are really the typical challenges most organizations face says George Plesce FM Global vice president and operations manager First of all as we all know the culture of protection isn t the same around the world Codes and standards don t necessarily support that each and every time and the quality of the risk in place isn t at the level that we and McCormick would like it to be At the same time McCormick was expanding into emerging markets it was consolidating and streamlining facilities in its major markets at home That consolida tion which began a decade ago involved the company shifting a large share of its produc tion and storage at a single site It was indeed smart for business But once all was said and done it resulted in uneasy new vulner abilities If something unexpected happened in that one location which presented issues with dust and ignitable liquids business would have suffered serious interruption Larry Delp is a senior project engineer with McCormick During this consolida tion you could see that we were putting more of our eggs in fewer baskets he says The risks we had in the past were still pres ent only now the impact could be greater because we didn t have the degree of built in redundancy amongst different sites that we had previously In the event of a catastrophic failure at a facility our plan was just to go to one of our other facilities This was a more complicated option Once the consolidation and expansion was under way FM Global had its share of concerns about protecting its client McCor mick insurance partner with FM Global since 1967 along with longtime broker partner Marsh began to delve into the chal lenges that lay ahead In the last three years we ve taken a STRATEGIC APPROACH TO MANAGING RISK that we first applied domestically We are now exporting that strategy globally BOB CONRAD MCCORMICK CFO McCormick has always been involved globally says John Koester risk consultant with Marsh who has been working with McCormick for 30 years It was an evolu tion there were many changes they had gone through over the years Once they fully rec ognized the issues they were dealing with they embraced them and took care of them It s been great to see how they ve risen to the challenge One of the reasons McCormick is so successful is that they re willing to change and evolve says Plesce They always make decisions that make sense from a busi ness standpoint But in many cases those decisions change your exposure to loss ISSUE 2 2015 REASON 31

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