FOR INTERRUPTIONS IN THE SUPPLY CHAIN Anthony Vatterott
Overview Business Continuity Institute: 70 percent of organizations recorded a supply chain disruption this year. Adverse weather conditions were found to be the main cause of disruption. IT and telecommunication outages are the second most likely disruption. 20% of business say their brand or reputation has suffered due to supply chain disruptions.
Phase 1: Assess Physical risks are defined and quantified. The risks identify vulnerability in critical processes. Phase 2: Analyze Prioritize critical processes by significance. Determine level of resources required, the period in which service will be recovered.
Phase 3: Design Develop strategies to minimize the outage impact. Define the role individuals play in affecting recovery. Phase 4: Execute Simply, implement the solution design. Communicate with legal, HR, IT and Operations and off-site components. Phase 5: Test Conduct initial company awareness training. Modify the plan for new recovery scenarios.
Success Stories Implemented CrewSolver software to allocate crew and resources after weather disruptions. Factors cancellations, labor contracts, overtime, and sick/vacation time. Achieved 100% on time flight arrivals in 1st month after 9/11. Saved $40 Million in % of coffee production from 4 plants in New Orleans, LA. Disrupted by Katrina. 1 facility inaccessible. BCP at each facility allowed all 550 employees to be accounted for within 20 days despite faulty telecommunications. Resumed full production capacity within 1 month, with 6% increase in coffee sales. Continental Airlines Proctor & Gamble
Conclusion-BCP Identifies the organization's exposure to internal and external threats. Synthesizes hard and soft assets to provide effective prevention and recovery. Maintains competitive advantage and value chain integrity. Phase I: Risk AssessmentPhase 2: Process AnalysisPhase 3: Solution DesignPhase 4: ImplementationPhase 5: Testing & Maintenance