As global supply chain issues create significant vulnerabilities and disruptions to the delivery of goods and services, they provide a stress test for companies’ business continuity management strategies.
One important finding has emerged as leaders continue to navigate their organizations through the disruption of goods and services: Focusing on the most critical aspects of the business have helped companies streamline their approach and prioritize strategically as they seek to build risk resilience.
In a rapidly evolving risk situation, companies that are taking a comprehensive look at understanding and measuring the financial impact of their supply chain disruptions are able to prioritize responses and establish controls to help rectify the threats they face. That includes defining what is essential to the organization.
In practice: How a burger chain defines essential services — and delivers
To illustrate essential services in action, we can look at a hypothetical burger chain. BCM strategies and vendor resiliency analyses come into play when a burger chain focuses on its mission-critical work — getting burgers into the hands of customers. Companies should work with vendors to ensure consistency in quality and safety at every step, including outlining in the master service agreement how vendors should respond to risk — for instance, if a grower experiences a listeria outbreak, the temperature control fails on a truck while in transit, or paper products face a shortage.
A robust BCM plan and backup vendors for key products help keep the supply chain intact — and support the restaurant’s mission. The example below illustrates some of the supply chain, vendor and personnel factors the burger chain could incorporate in its BCM strategy.