Crisis Preparedness for Business

Car Under Water. Vehicle Flooded by River Flood in Des Plains, IL, USA. Flooded City Streets After Few Days of Intense Rain. Nature Disasters Photo Collection.

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In a time where the people need necessity goods, businesses need to coordinate with all stakeholders to prepare ahead of time.

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             Crises occur for many reasons, namely natural disasters, strikes or fire. Such events can result in transportation disruptions. Preparing for the worse with emergency plans can help manage problems that arise, quickly and with minimal damage. The following is an example of a crisis preparedness plan.

  1. Prepare an emergency plan through brainstorming: The key to coping is to map all relevant teams together based on the assumption that worse scenarios can indeed happen and plan accordingly to accommodate it. The responsible and the supporting agents for each capacity, as well as overlapping jurisdictions, must be stipulated. Thus, the emergency planning process requires representatives of all teams and level on board to create an as comprehensible an outline as possible. In addition, the plan must include connections to customers and the supplier, as well.
  2. Always have emergency reserve: Businesses should have raw materials prepared in case the suppliers are out of stock or cannot supply. Many businesses have multiple warehouses to diversify the risk. Products with quick turnovers are always stocked with a surplus. Logistics warehouse type 3PL and 4PL are a good choice for raw material and product emergency back-ups as businesses can opt to store products in strategic geographical locations in a short period of time with zero investment. Aside from goods and raw materials, another important back-up is data and mobile communication systems that remain operational during evacuation transport.
  3. Create an emergency box: In worse situations, evacuate is necessary. Businesses need to have an emergency box that include company essentials, which varies by business and business type, such as important documentation and company, employee and customer information. Such documents must always be updated and prepared for emergency mobility, where emergency drills should include updating the information as part of the procedure.
  4. Follow emergency plans: Regardless of how thorough a plan is, the key success factor when the event occurs is decisive and effective communication. When emergency strikes, an executive meeting should be organized to decide on appropriate courses of action accordingly and communicate to get customers, suppliers and strategic partners on the same page and head in the same direction.

Proper emergency handling requires a great deal of preparation and regular rehearsal drills. Organizations that effectively implement procedures according to plan in the midst of crisis are known to come out ahead of the situation and require less recuperation time to get back to normal.

Compiled by BLOG.SCGLogistics

References and photos supplychaindive.com, freepik.com

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