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FOR INTERRUPTIONS IN THE SUPPLY CHAIN Anthony Vatterott.

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Presentation on theme: "FOR INTERRUPTIONS IN THE SUPPLY CHAIN Anthony Vatterott."— Presentation transcript:

1 FOR INTERRUPTIONS IN THE SUPPLY CHAIN Anthony Vatterott

2 Overview -2010 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.

3 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.

4 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.

5 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 2001. 20% 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

6 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

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