May 22 2014 Arthur Chee Sandy Lee Motivation A business continuity plan helps an organization prepare in advance of a disruption and the impact of a disaster can be reduced by planning ahead ID: 1040240
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1. Business Continuity Planning for a U.S. Supply ChainMay 22, 2014Arthur CheeSandy Lee
2. MotivationA business continuity plan helps an organization prepare in advance of a disruption, and the impact of a disaster can be reduced by planning ahead.The objective of the study is to provide a directional sense of how business continuity planning (BCP) could be conducted.
3. Methodology
4. Business Impact Analysis (BIA)4 Scenarios:The facility was rendered inaccessibleThe facility was accessible, but 50% of the merchandise was damagedData center failureE-commerce global contact center breakdownTime to recovery is the time it would take for a particular node to be restored to full functionality after a disruption. (Simchi-Levi, Schmidt, and Wei, 2014)
5. Business Impact Analysis14 Days7 Days20 DaysFacility A, BRetailWholesaleE-commerceFinancial Impact = [Scenario specific considerations] + [Per Day Revenue Lost * (Days TTR – Inventory Days)]
6. The facility was rendered inaccessible14 Days7 Days20 DaysFacility A, BRetailWholesaleE-commerceBIA – Scenario 1
7. BIA – Scenario 1 (Facility A)
8. BIA – Scenario 1 (Facility A)
9. 14 Days7 Days20 DaysFacility A, BRetailWholesaleE-commerceBIA – Scenario 2The facility was accessible, but 50% of the merchandise was damaged
10. BIA – Scenario 2 (Facility A)
11. 14 Days7 Days20 DaysFacility A, BRetailWholesaleE-commerceBIA – Scenario 3Data center failure
12. BIA – Scenario 3 (Facility A)
13. 14 Days7 Days20 DaysFacility A, BRetailWholesaleE-commerceBIA – Scenario 4E-commerce global contact center breakdown
14. BIA – Scenario 4 (Facility A)
15. Structure of Business Continuity Planning
16. Business Impact Analysiscritical processesfinancial impactsnon-financial impactsregulatory or compliance requirementsestimated time period of tolerance in operating without automated systemsthe level of manual work
17. BCP in Upstream Supply Chain
18. BCP in Downstream Supply ChainWarehousing and Office Capacity
19. BCP in Downstream Supply ChainEquipment for Temporary Operations
20. BCP in Downstream Supply ChainHuman Resources
21. BCP in Downstream Supply ChainTransportation and Logistics
22. BCP in Downstream Supply ChainIT Systems
23. BCP in Downstream Supply ChainInventory
24. BCP in Downstream Supply ChainReviewing BCP
25. Key Issues in Business Continuity Planning
26. SummaryBusiness impact analysis (BIA) could be conducted in terms of predictable outcomes resulting from a disruptive event to prevent a business continuity plan (BCP) from being too event specific.There is no one-size-fits-all continuity plan; every business continuity plan needs to be tailored to the unique supply chain needs of an organization.A well-architected BCP can afford a company strategic levers for competitive advantage in the marketplace.
27. Questions?