With all the coverage on the oil spill in the gulf coast, it's hard not to think about business vulnerability and disruption. This has me thinking about business resiliency and why it's so critical.
From a supply chain perspective, disruptions can create three main types of vulnerabilities: supply, operations and demand. With today's global supply chains, we've basically exposed ourselves to so much more.
So whether it's a category 4 hurricane, a massive oil spill, or a recall of food products due to contamination, business resiliency should be on everyone's minds for good reason -- if your business is not prepared with a plan for how to handle a temporary knot in your supply chain or how to survive a disaster, then your business will suffer and ultimately may not survive.
Let's quickly look at the basic stages of a disruption:
3. Initial reaction
4. Delayed reaction
The problem a lot of companies face is that although the concept of business resiliency is not new, many wait until a disruption has happened to really get engaged. Companies need to have a plan in place now. Don't wait until it's too late.
Take the time to collaborate by researching and planning, and by following these steps:
1. Assess -- Understand where your company is in terms of preparation for disruption.
2. Plan --Look for trouble and know your industry.
3. Communicate -- Be open and honest with supply chain partners.
4. Evaluate -- Watch your supply chain.
5. Re-evaluate - Gather feedback from customers.
So the key is to plan, plan, plan for business resiliency. Time invested in preparing for a business disruption will pay off immensely.
Is your business prepared?