Spare Yourself the Panic and Plan Ahead for Business Resiliency

July 27, 2010
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 ...

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:
1. Event
2. Impact
3. Initial reaction
4. Delayed reaction
5. Recovery

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?

Jim
Tompkins Associates

About the Author

Jim Tompkins | CEO

Dr. James A. Tompkins is an international authority on leadership, logistics, material handling, outsourcing, and supply chain best practices. As the founder and CEO of Tompkins International, he provides leadership for Tompkins globally.

His 30-plus years as CEO of a consulting / integration firm and his focus on helping companies achieve profitable growth give him an insider’s view into what makes great companies even better. Listen to an interview of Jim Tompkins on the Business Leader Radio show.

As a high-level business advisor, his unique perspective prepares corporations and executives for the future.

To share his knowledge and provide up-to-date information on supply chain and business trends, he developed the GoGoGo! Blogand Global Supply Chain Podcast.

He has written or contributed to more than 30 books and eBooks, including Caught Between the Tiger and the Dragon, Bold Leadership, Logistics and Manufacturing Outsourcing, The Supply Chain Handbook, andNo Boundaries. Jim has been quoted in hundreds of business and industry magazines such as The Journal of Commerce, Supply & Demand Chain Executive, and FORTUNE, and he has spoken at more than 4,000 international engagements.

Jim has served as President of the Institute of Industrial Engineers, the Materials Management Society, and the College-Industry Council on Material Handling Education, and Purdue has named him a Distinguished Engineering Alum. He has also received more than 50 awards for his service to his profession.

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