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Challenges in the Era of Globalization - iaabd

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Proceed<strong>in</strong>gs <strong>of</strong> <strong>the</strong> 12th Annual Conference © 2011 IAABD<br />

social political actions (8); lack <strong>of</strong> trust with partners (9); electric power shortage and outage (10);<br />

<strong>in</strong>formation delays, scarcity, shar<strong>in</strong>g (11); <strong>in</strong>frastructure breakdown (12); contract failure (13); degree <strong>of</strong><br />

control over logistics operations 14); weaknesses <strong>in</strong> <strong>the</strong> national, regional, and local <strong>in</strong>frastructure (15);<br />

supplier product/material quality failures (16); supply cha<strong>in</strong> logistics security breaches (17); ris<strong>in</strong>g energy<br />

costs (18); ris<strong>in</strong>g transportation costs; and It risks (19), loom large as potential bl<strong>in</strong>d spots for INEC,<br />

suppliers, logistics providers, and customers or voters to susta<strong>in</strong><strong>in</strong>g a consistent state <strong>of</strong> operations<br />

cont<strong>in</strong>uity. For example, a disruption <strong>in</strong> supply can be triggered by force majeure, accidents, supplier<br />

failure/reliability, terrorism, social-political actions and <strong>in</strong> each case will have <strong>the</strong> same severity.<br />

Follow<strong>in</strong>g <strong>the</strong> MIT-RPG (2003), <strong>the</strong> six different types <strong>of</strong> failure modes <strong>in</strong>clude disruption <strong>in</strong> supply,<br />

disruption <strong>in</strong> transportation, Disruption at facilities, Freight breaches, disruption <strong>in</strong> communications, and<br />

disruption <strong>in</strong> demand are reported <strong>in</strong> Table 1. Supply cha<strong>in</strong> failure mode describes how a physical<br />

product/materials or process may fail to meet end-users’ requirements or value expectations.<br />

Table 1. Potential Supply Cha<strong>in</strong> Failure Modes<br />

Failure Description<br />

Disruption <strong>in</strong> supply Unavailability or delay (late delivery) <strong>of</strong> election materials from<br />

vendors (or suppliers) that can result <strong>in</strong> a shortage <strong>of</strong> ballot papers that<br />

could impede <strong>the</strong> conduct <strong>of</strong> elections.<br />

Disruption <strong>in</strong> demand Delay or disruption <strong>in</strong> <strong>the</strong> arrival <strong>of</strong> elections materials and staff at <strong>the</strong><br />

poll<strong>in</strong>g stations can discourage voters from participat<strong>in</strong>g <strong>in</strong> <strong>the</strong><br />

electoral process. Thus, affect<strong>in</strong>g <strong>the</strong> credibility <strong>of</strong> <strong>the</strong> electoral<br />

Disruption <strong>in</strong><br />

transportation<br />

process.<br />

Unavailability (unreliability) <strong>of</strong> transportation <strong>in</strong>frastructure that could<br />

delay <strong>the</strong> <strong>in</strong>bound and outbound transportation <strong>of</strong> electoral sensitive<br />

materials.<br />

Disruption at facilities Disturbances or attack<strong>in</strong>g <strong>of</strong> <strong>the</strong> poll<strong>in</strong>g stations due to lack <strong>of</strong> security<br />

can <strong>in</strong>hibit normal elections logistics operations.<br />

Freight breaches Violation <strong>of</strong> <strong>the</strong> <strong>in</strong>tegrity <strong>of</strong> cargoes and materials that can lead to loss<br />

or tamper<strong>in</strong>g <strong>of</strong> materials, and delay <strong>in</strong> electoral process.<br />

Disruption <strong>in</strong><br />

communications<br />

Supply Cha<strong>in</strong> Risk (Bl<strong>in</strong>d Spot) Management<br />

Delay or unavailability <strong>of</strong> <strong>in</strong>formation and communication<br />

Infrastructure with<strong>in</strong> or outside <strong>the</strong> INEC that can impair its ability to<br />

coord<strong>in</strong>ate logistics operations and execute a successful elections.<br />

Handfield (n. d) contends that “<strong>the</strong> foundation for a solid supply cha<strong>in</strong> risk management program <strong>in</strong>cludes<br />

improved knowledge <strong>of</strong> where <strong>the</strong> disruptions may occur, and tra<strong>in</strong><strong>in</strong>g to know when and how to<br />

respond.” Qiang et al (2008) argue that <strong>the</strong> goal <strong>of</strong> supply cha<strong>in</strong> risk management is to reduce <strong>the</strong> impacts<br />

<strong>of</strong> disruptive risks or to enhance <strong>the</strong> supply cha<strong>in</strong> robustness. Manag<strong>in</strong>g and mitigat<strong>in</strong>g supply cha<strong>in</strong><br />

disruptions have become crucial for organizations’ survival <strong>in</strong> today’s turbulent global environment. Risk<br />

management entails <strong>the</strong> process <strong>of</strong> identify<strong>in</strong>g, assess<strong>in</strong>g, and manag<strong>in</strong>g <strong>the</strong> risk <strong>in</strong> an organization’s<br />

operational strategy. It is <strong>the</strong> qu<strong>in</strong>tessential part <strong>of</strong> an operational strategy that must be <strong>in</strong>corporated <strong>in</strong>to<br />

organization’s risk management program. A risk management approach can have three elements<br />

<strong>in</strong>clud<strong>in</strong>g assessments <strong>of</strong> threat, vulnerabilities, and consequences. Specifically, risk =<br />

(threats)(vulnerabilities)(consequences). Threats <strong>in</strong>clude terrorism associated social-political actions,<br />

cargo <strong>the</strong>ft <strong>of</strong> election sensitive materials, kidnapp<strong>in</strong>g, hijack<strong>in</strong>g <strong>of</strong> ballot boxes, government <strong>in</strong>stability,<br />

parties’ issues, and general <strong>in</strong>tegrity <strong>of</strong> people and/or election staff. Vulnerability entails <strong>the</strong> ability to<br />

deter, detect, delay, and respond to bl<strong>in</strong>d spots, <strong>in</strong>clud<strong>in</strong>g general security, procedural security, physical<br />

access controls, physical security, transportation security, IT security, and threat awareness. Consequence<br />

580

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