Be prepared to act flexibly - Business Continuity and Covid-19

The current challenges in global distribution show the value of good logisticians. Their job requires to act flexibly to incidents. Once it is a port jam, then a strike or a natural disaster where alternative routes or storage options are needed. Covid-19 has impacted global supply chain in an unprecedented way – and it was a learning curve for all.

A good risk management helps to identify potential threats, we usually orientate ourselves on previously experienced events. These can be prepared and trained accordingly. But how do we act in the face of events we hadn’t even imagined before? One solution might be to focus on the impact rather than the scenario:

My personal learning process in dealing with pandemic situations began with H5N1 in 2006 and continued with H1N1 in 2009/10. At that time, I worked for an airline caterer/logistics company. We developed with experts a prevention plan based on two extreme scenarios: ‘We have all staff present – but no business/work AND no staff – but all business’. (This encompasses all nuances in-between) The departments individually prepare themselves based on a check list. I.e., IT: What is needed to work remotely? HR: Can we demand staff to take unpaid leave? Commercial/Operation: Which customers do we serve first if we need to prioritize? The risk or crisis team trains and orchestrates.

We were able to apply the plan for an unexpected event first: It was the 2010 Eyjafjallajökull volcano eruption in Iceland and with it the closure of European airspace. Scenario planning was necessary because the different countries did not act in a coordinated manner. We were able to act quickly and flexibly, resulting in limited financial impact.

Pandemic situations were identified during CEVA’s ERM assessment and prepared with a pandemic- and a crisis communication plan. At the beginning of February 2020, I was personally confronted with the limited availability of PPE (like masks or hand sanitizers) in pharmacies in Thailand and Cambodia. We needed to act fast. We have created modules that can be used for sites depending on the local situation and requirements. Each site operates its individual BCP, and we monitored it globally. Such a flexible solution was a good decision since the official regulations within the countries were different and constantly changing. While some customers hardly had any business for us, others needed additional staff.

I would define a crisis as a specific, unexpected and non-routine event that create high level of uncertainty and (possibly perceived) threat to high priority goals. All those parameters are covered by Covid-19. A good BCM must also survive ‘a series of events’. One of those cases occurred during the sanitation crisis when a hurricane destroyed up to six locations in Nashville/USA. Within a short time, the team was able to resume operations.

Overall, we have had very positive feedback from our employees on protecting them, partners and customers. And the monetary business results were also very positive.

As mentioned in the first paragraph, Covid-19 is an ongoing learning process for everyone. A BCM is a living document, that is based on preparation, but is continuously questioned when a task or action needs to be adjusted based on current developments or lessons learned.

Unexpected events happen now and in future. Flexible preparation and quick action can help to prevent a severe crisis situation.

Daniel Halter. My own experience. All information are already public. This article has been published on LinkedIn, September 5, 2022.