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A Step-by-Step Guide to Creating a Warehouse Business Continuity Plan

December 24, 2022

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What would you do if your warehouse was struck by a natural disaster and could no longer operate? Without a business continuity plan in place, you could lose months of inventory and valuable customer data. By creating a warehouse continuity plan, you can minimize the risks associated with a disruption to your operation.

When most people think about business continuity planning, they picture large corporations with complex IT systems and lots of data to protect. However, small businesses can be just as vulnerable in the event of a natural disaster or another emergency. If you run a warehouse, it’s important to have a business continuity plan in place to ensure that your operations can continue in the event of an unexpected interruption.

Warehouses are critical components of many businesses, yet they often lack formal business continuity plans . This can lead to serious consequences in the event of a disaster.

Creating a warehouse business continuity plan may seem like a daunting task, but it can be done by following these simple steps. By taking the time to create this plan, you will ensure that your business can continue operating in the event of a disaster or emergency. Here are the steps you need to take to get started.

  • Assess your needs and vulnerabilities.

Draft a plan based on your findings.

  • Test and revise your plan as needed.
  • Implement and update your plan regularly.

Train employees on how to follow the plan.

In this blog post, we will provide a step-by-step guide on how to create a business continuity plan for your warehouse. By following these guidelines, you can ensure that you have a plan to fall back in case of business disruptions .

How Do you Write a Business Continuity Plan?

A contingency plan should include:

  • A description of the risk
  • The potential consequences of the risk
  • A plan of action to minimize the effects of the risk
  • Who will be responsible for implementing the plan
  • An estimate of how much time it will take to implement the plan
  • Resources required to implement the plan
  • An estimate of the costs associated with implementing the plan

What are Business Continuity Strategies?

A business continuity strategy (BCS) is a plan that identifies potential risks to a company and outlines how the company will respond to those risks.

There are a few key business continuity strategies that companies can put in place to help protect their operations in the event of a disaster or emergency.

Some of the most common strategies include having a backup plan for critical systems, having a disaster recovery plan in place, and maintaining an adequate stock of supplies and materials. Additionally, companies can also consider establishing backup facilities and/or working with other businesses to create continuity plans .

By taking these measures, businesses can help ensure that they will be able to continue operating even in the face of adversity.

Importance of Business Contingency Plan

  • A contingency plan is important for any business because it outlines the steps that need to be taken in order to maintain operations in the event of a disaster or emergency.
  • A well-written contingency plan can help a business minimize the damages caused by such an event, and can help get the business back up and running as quickly as possible.
  • A contingency plan should include information on how to access critical data and systems, how to contact employees and customers, and what steps need to be taken in order to restart operations.
  • It is important for businesses of all sizes to have a contingency plan , as no one is immune from disasters or emergencies.
  • Having a solid contingency plan will give your business peace of mind and allow you to focus on growth and expansion.

Steps to Create a Business Continuity Plan for a Warehouse

Assess your needs and vulnerabilities.

By doing a risk assessment on the disruptions that might affect the business through undertaking business impact analysis . BCM risks will be identified and plans for such disruptions will be adopted. This enables management to plan ahead in response to disruptions .

Contamination of the warehouse or site will require the implementation of the emergency procedure and evacuation of staff to a safe assembly point.

An emergency meeting will be held by management and employees who had been on-site at the time of the event will provide their first-hand account of what they witnessed and experienced. The information obtained from this meeting will assist in carrying out an investigation into what caused the disruption and will help in preventing similar incidents from happening in the future.

The immediate action to be taken by management is for them to contact and inform other departments and employees of what has happened. The website will remain up and running during business hours; however, out-of-hours emails will not be monitored or responded to until the next day.

A dedicated emergency contact will be assigned to each department head. This person will act as the first point of contact for any emergency matters that may arise on an out-of-hours basis. Work from home initiatives will be activated by the business to allow staff members who live closest to work to make it in.

To prepare for disruptions, consider a backup warehouse location. An alternative warehouse can provide a safe working environment , but this plan will require additional time and labor to reroute all of your shipments by land.

It’s best to keep the location in mind for an alternative, non-disruptable warehouse in case there is a need. It is critical to plan for the identification of essential inventory to duplicate in the alternate location.

One of the possibilities is to establish a backup call center to serve clients in an emergency. There must also be itinerary maps for incoming shipments, outbound and inbound routes, and re-routing plans.

Once you have identified the risks and vulnerabilities, you can begin to develop policies and procedures for mitigating those risks . Your BCP should also include information on how to activate your plan, who will be responsible for each task, and contact information for key personnel.

Ultimately, your BCP should provide a roadmap for continuing operations in the event of a disaster or emergency. Once the crisis has passed, you will then develop an incident-review committee to identify opportunities for improvement.

Test and revise your plan as needed

Testing your BCP is crucial in order to make sure that it will work as planned, and revision is necessary to ensure that the plan can adapt to changes within the organization . By testing and revising your BCP regularly, you can help ensure that your organization will be able to continue operating in the event of a disaster.

Testing and revision of a BCP are essential to ensure that the plan meets the needs of the organization. Testing your BCP is essential for ensuring that it will work as intended in the event of a real-world incident . It’s also important to revise your BCP regularly, in order to reflect changes within your organization and the environment .

It is also essential to ensure that the BCP will be effective in an actual emergency. The test should include drills for evacuating the building, restoring computer systems, and contacting key personnel. The plan should also be revised regularly to reflect changes in the company’s operations or environment.

By doing both testing and revision regularly, you can be confident that your BCP will help protect your business in times of need. The following are key steps in the testing and revision process:

  • Review the objectives of the BCP and revise as needed.
  • Test the plan with internal stakeholders and revise as needed.
  • Test the plan with external stakeholders (e.g., customers, suppliers) and revise as needed.
  • Update contact lists and emergency procedures as needed.
  • Revise and update plan documents from lessons learned during testing.

Implement and update your warehouse business continuity plan regularly.

There are a few important reasons why it’s important to regularly update your business continuity plan (BCP). First, the environment in which your business operates is constantly changing, so it’s important to ensure that your BCP reflects current risks and threats. Second, technology evolves rapidly, so you may need to update your BCP to reflect changes in how your business relies on technology. And third, as new employees join your organization and existing employees leave, it’s important to make sure that everyone who needs access to the BCP is familiar with it.

Business continuity planning (BCP) is a vital part of any organization, and should be updated regularly to ensure that all aspects of the plan are still accurate and relevant. Implementing and updating your BCP plan regularly can help to ensure that your organization is able to continue operating in the event of a disaster or emergency.

Some key reasons to implement and update your BCP plan regularly include:

  • To ensure that all staff are aware of their roles and responsibilities in the event of an emergency.
  • To test the effectiveness of the plan by simulating different types of emergencies
  • To update contact information for important suppliers , customers, or other stakeholders
  • To review and revise evacuation procedures as needed.

Having a well-trained staff is critical for keeping your business running smoothly during and after a disaster . Employees need to be familiar with the company’s Business Continuity Plan (BCP) so that they know what to do in the event of an emergency.

Training employees on how to follow the BCP is one of the most important things you can do to ensure continuity of operations. Employees need to understand the plan and know their roles and responsibilities. They should also be familiar with the contact information for key personnel and be able to access disaster recovery resources quickly.

Regular training is essential, especially in light of changes or updates to the BCP. Make sure employees are kept up-to-date on any changes as well as:-

  • Employees need to be familiar with the company’s Business Continuity Plan (BCP) in order to facilitate a smooth and orderly transition in the event of an emergency.
  • Employees need to be familiar with the company’s procedures for dealing with emergencies, as well as their specific roles and responsibilities in the event of an emergency.
  • Employees need to be familiar with the location of all emergency evacuation routes and instructions for evacuating the premises.
  • Employees need to be familiar with the contact information for all personnel who will be responsible for leading or assisting with emergency response efforts.
  • Employees should test their knowledge of the BCP periodically by participating in drills and exercises that simulate various types of emergencies.

As you can see, creating a warehouse business continuity plan is not as difficult or complicated as it may seem. It will take time and patience to get everything in order, but the effort will be well worth it when disaster strikes your company and all of your hard work pays off with no interruption in service. We hope this post has helped you understand what’s involved with developing a successful continuity plan for your enterprise .

A successful business continuity plan will minimize disruption to your business operations .It helps you avoid potentially disastrous situations. A business continuity plan helps your company maintain its operations and reputation during disruptions .An emergency situation that causes some or all of those operations to be halted.

By taking the time to create a warehouse business continuity plan, you will be able to ensure that your company can continue operating in the event of an emergency or disaster. We’ve provided some easy steps for how to get started and we would love to help you put together this plan with our team of experts. If any part of these five steps seem too difficult or overwhelming, don’t hesitate to reach out-we want nothing more than for your company’s success!. We encourage you to contact us if we can help further by providing any information we might have that could assist in implementing one successfully.

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Chris Ekai is a Risk Management expert with over 10 years of experience in the field. He has a Master’s(MSc) degree in Risk Management from University of Portsmouth and is a CPA and Finance professional. He currently works as a Content Manager at Risk Publishing, writing about Enterprise Risk Management, Business Continuity Management and Project Management.

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business continuity plan for distribution center

13 Things To Consider in Business Continuity Plan for Warehouse During Crisis

  • Logistics Supply Chain Management Transportation

One aspect of life is unfortunate events like Coronavirus occasionally happen due to various planned or unplanned factors. The likely anticipation and preparations for such a crisis remain a crucial aspect of any sensible Business Continuity Plan (BCP). For businesses with warehouse(s), which plays a vital role in its infrastructure, the effects of any crisis can be highly damaging, specially to meet customer service expectations .

The use of a business continuity plan generates roadmaps to follow in case of such a crisis. Although every business may not have a similar continuity plan, the many experiences in terms of differences and similarities can help shape your Business Continuity Plan for Warehouse During Crisis.

“By failing to prepare, you’re preparing to fail.”- Benjamin Franklin

Wherever there are business operations, plans for catastrophe or sudden business disruptions are necessary to help save a more significant portion of your activities, especially staff safety and customers. The use of the Business Continuity Plan can assist in alleviating such matters, and it’s essential to consider some critical factors in achieving excellent results.

So, what are the things to consider in minimizing the effect of a potential crisis for warehouse management ?

13 Things you must Consider in Business Continuity Plan

Below are the 13 Things you must Consider in Business Continuity Plan for Warehouse During Crisis to help guarantee operational continuity within the shortest possible period.

Planning Ahead

  • Warehouse/Site contamination
  • Process/supplier identified for quick decontamination in case of contamination of warehouse/office

Work from Home

  • Alternative Warehouse location planned/set up in case of contamination
  • Plan for blue-collar replacement resources in case of sickness/absence
  • Identify Critical Inventory to duplicate

Operations Disruption

  • Have a backup Call Center to take customer calls during a crisis.

Inbound Routes Planned

  • Plan of re-routing of incoming shipments
  • Outbound Routes planned
  • Last-mile distribution

business continuity plan for distribution center

Cost Categories of Inventory

Inbound Operations Course

Inbound Operations Course in Logistics

Procurement Toolbox

Procurement Toolbox #1: Communication & Facilitation in Procurement

To plan involves engaging experts and other relevant parties in creating an appropriate solution. The use of careful consideration in creating a contingency plan helps to hasten quick recovery from the crisis. If your business is planning to put a personal project in place or review and adjust an existing policy, the following things to consider become useful:

  • The plan should be created using expertise from vital operational areas that may be affected by a major incident
  • List all potential events that can affect your business operational capabilities.
  • Every possible incident should be rated based on likelihood and severity.
  • Give high priority to handle the most severe or likely threat effectively.
  • Breakdown the plans into stages and create a process for moving from the unstable state of regular operation.
  • Identify critical suppliers (as well as lead times) with the capabilities of repairing or replacing damaged buildings, equipment, and other vital services.
  • Essential personnel should be guided on specific actions and responsibilities.

I would also strongly recommend conducting detailed warehouse audt for all warehouse activities using Best Warehouse Audit Tool to Improve Performance . In this way you can proactively identify any risk areas and close gap.

I would always recommend to follow below steps:

Strategize > Execute > Audit > Adapt > Learn > Repeat

Warehouse/Site Contamination

With Business Continuity Planning, you get a comprehensive insight into the safety of assets, operations, premises, and staff. The identification of Warehouse/Site contamination includes priority risks as well as the evaluation of actions to be taken in response to identified risks. Having adequate response already in place permits for further planning. For warehouse/Site contamination, the Things to Consider in Business Continuity Plan includes:

  • Seeking advice and assistance from appropriate local Government authorities . They always have some specific regulations and compliance topics.
  • Standard Operating Procedures (SOPs) for tracking employees, medical evacuation, and emergency communications.
  • List of assembly points, evacuation routes, security focal points, and relevant procedures.
  • Specific memorandums of understanding (MoUs) with health facilities to handle delays in emergencies.

business continuity plan for distribution center

Process/Supplier identified for Quick Decontamination in Case of Contamination of Warehouse/office

In cases of very high-risk crises, pre-identification of critical business processes and suppliers identified for immediate decontamination plans become essential to smoothen operations easily. The use of crucial assessments is recommended and can be applied to pre-identify all necessary services. The vital activities are required to be identified beforehand. For Process/supplier identified for quick decontamination in case of contamination of warehouse/office, the Things to Consider in Business Continuity Plan includes:

  • Differentiating critical operations into key groups based on whether it is vital, requires relocation, or can be performed remotely.
  • Identification based on lifesaving activities.
  • Essential services for maintenance.

The plan involves the identification of operations which can be effectively handled from offsite locations, preferably from home, by trusted employees. Working from home can provide the needed assistance if the business continuity plan becomes active. It is essential to identify specific assets, resources, or strengths that could be pooled to make the plan more efficient. For procedures involving working from home, the Things to Consider in Business Continuity Plan includes:

  • Access to tools and processes for critical staff.
  • Policies and regulations required for effective task completion.
  • Also consider safety while working from home.

During the crisis of COVID-19 we have used Microsoft Teams extensively and I found this tool one of the best collaboration tools, as Microsoft claim “Work remotely without feeling remote’, is very much true.

business continuity plan for distribution center

Alternative Warehouse Location Planned/Set-up in Case of Contamination

An alternative warehouse location plan is essential for quick re-initiation of vital services, and faster response to demands. The business continuity plan would engage several measures to ensure the initiation of emergency response suited for your unique operations. The Things to Consider for Alternative Warehouse location includes:

  • Location and capacity of the alternate warehouse.
  • The functionality available or needed for smooth operations during a crisis.
  • Perform rapid risks and needs assessments.
  • The activation process required.
  • Repurposing staff to suit the functions for the new alternate location.
  • Communicate about the Alternative Warehouse location with employees as well as key partners.

Plan for Blue-Collar Replacement Resources in case of Sickness/Absence

The reliability of crucial staff may be compromised, but having a plan for blue-collar replacement resources within the BCP would guide the repurposing of staff during a crisis. The strategy needs to assess employees based on performance and further create training to solve any emergency upgrade involving teams easily. Keep staff motivated can be challenging during crisis. Key employees need to be identified and trained for similar functions that would prove vital during any crisis. For plans involving blue-collar replacement resources, the things to consider include:

  • Activates the BCP and get the necessary approval for dedicated staff.
  • Notify key staff of possible activation of the business continuity plan.
  • Appropriately address the security of assets, premises, and staff. And define the permit conditions in detail if required.
  • Announce repurposing of staff to cover both emergency response and critical operations identified.

Identify Critical Inventory to Duplicate

A regular review of crucial inventory within the warehouse is assessed, based on ABC classification and duplicates should be planned in cases where the factors are considered very important. For example you want to resock you A Class critical items in two warehouse locations. Also, for practical and reliable outcomes during a crisis, the business continuity plan needs to be subjected to constant reviews (including ABX-XYZ classification ) to seek areas needing improvement. In guaranteeing proper crisis management, procedures are required to be consistent with the business priorities; a regular testing policy should be added.

For Operations Disruption, the BCP needs to ensure proper testing is done before any approval. The use of action plans identified for recovery and enhancement of operations during a disruption in a warehouse should be maintained, reviewed, and updated regularly. In cases of operation disruption, the things to consider include:

  • Having essential elements secured and ready to provide cover over such periods.
  • Update Management Tools and maintain functioning at required levels.
  • Validate the adequacy of emergency plans, systems, and procedures.
  • Familiarize all staff with new plans, procedures, and systems by adequate training.

Have a Backup Call Center to Take Customer Calls During a Crisis

The primary task of any call center is to provide proper communication with customers. Once any interruption occurs, like in case of an emergency, there is an interruption. For any reason, the BCP should cover for such instances as sending the wrong notion may cause adverse effects on the market. For backup Call Center plans, the essential things to consider include:

  • List expected logistics needs regarding significant assets.
  • List all budget lines that can be converted to serve as response lines.
  • List all critical players in emergency operations alongside their contact details.
  • Ensure relevant SOPs are available.

Before taking any action relating to Inbound Routes, pause to review existing BCP and Disaster Recovery Plans. If there is a sufficient plan, a thorough approach would also be required to address a variety of contingencies capable of disrupting your business planned inbound routes. For planned inbound routes, the essential things to consider during crisis includes:

  • List of staff required alongside qualifications
  • List of identified routes that can be repurposed
  • Training methods in place towards performing assigned tasks

Plan of Re-routing of Incoming Shipments

The likelihood of having to engage other alternatives for inbound shipments in cases of the viral crisis has to be in the playbook. The re-routing plan for such scenarios needs to already be in place and should be flexible enough to reflect your business activities, complexity, and size. In ensuring a firm’s process is in place.

Outbound Routes Planned

Time remains a valuable factor for the route planning system as they can considerably limit your transportation calendar. Not only do outbound route systems should entail less distance from the warehouse, but it also helps curtail spending on other transport needs. For outbound Routes plan, the following tips are the essential things to consider during a crisis:

  • A practical, realistic, and feasible outbound route based on local Government permissions .
  • Simplify critical operations and promote needs-based on efficient resource usage. For example, since 5 th April 2020 most business need to apply for permit to deliver .
  • Create robust procedures that ease operations and implementation.

Last-Mile Distribution

For order quantities that differ daily or weekly, pick a system that automatically delivers efficient routes for last-mile delivery as well as multi-stop schedules. For the last-mile distribution plan, the following tips are the essential things to consider during a crisis:

  • Reduce overall miles and discuss practical daily planning efforts.
  • Regularly test and validate selected distribution methods.
  • Monitor and regulate these updates to address new needs and risks.

A Business Continuity Plan (BCP) for the warehouse in terms of crisis is only as effective as the planning put in place beforehand. It is critically important to set specific guidelines about who gets directly involved, and which stages everyone gets involved. Engaging the right employees and partners goes a long way in the planning stage, and these create a more transparent, consistent, and more reliable plan.

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About the Author-  Dr Muddassir Ahmed

Dr MuddassirAhmed  is the Founder & CEO of SCMDOJO. He is a  global speaker ,  vlogger  and  supply chain industry expert  with 17 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East and South East Asia in various Supply Chain leadership roles.   Dr. Muddassir  has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals and teams to thrive by providing best-in-class knowledge content, tools and access to experts.

You can follow him on  LinkedIn ,  Facebook ,  Twitter  or  Instagram

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Business Continuity and Disaster Planning for Distributors: What Is It, and Why Should Distributors Care?

  • December 1, 2022

When Hurricane Ian hit Florida, the forecasts were uncertain as to where it was going to cause the most damage. Ultimately, some businesses and the communities in which they operated were devastated while others were spared. This act of Mother Nature is a perfect example of why every business, including distributors, needs to have disaster planning in place, because you never know when, where, or how catastrophe might strike and imperil your organization, your income, your employees, and your customers.

Data Center Catalog found that “large enterprise businesses can expect downtime costing an average of $400,000 an hour”—a steep cost for not having a plan in place to mitigate potential effects of an unexpected event or disaster.

Business Continuity: What It Is and Why It’s Important

Business continuity is just what is sounds like: keeping a company functioning in the wake of a disaster or other unexpected event. Every business needs a plan to “keep the lights on,” so to speak, or there could be irreparable damage to revenue.

There is a difference between business continuity and disaster planning.

For example, during the early days of the COVID-19 pandemic in 2020, many distributors had to scramble and figure out how to do business remotely, from employees who could work at home and the tech they’d need to do that to the sales reps who could no longer visit a customer site.

Some distributors had plans in place and transitioned to a remote workforce and technology like video calling where they could. And some had already implemented online customer service options, including ecommerce, which helped them better support their customers.

No one could have predicted the hit we took when COVID arrived. But for those that already had some plans in place, there was no lost time trying to do all of this at the same time as others were.

And it seems the experience has had a positive long-term effect. “The latest BCI Continuity & Resilience Report 2022 found that most organizations are seeing resiliency processes become the norm,” according to the Business Continuity Institute (BCI). “Silos are dissolving, reporting lines to the C-suite are being reduced, and Business Continuity (BC) managers/Resilience managers are increasingly becoming a strategic part of organizational structures.”

Of course, while you need to be as ready as you can be for a big event like Hurricane Ian or COVID, any number of unexpected incidents could disrupt business: hurricane, flooding, power outage, cyberattack, sudden labor shortage, and more. Agility found in 2019 that “52% of businesses experienced a disruptive event(s) in the last five years.”

In other words, it could and probably has, happened to you.

What’s Included in a Business Continuity Plan?

When it comes time to develop your distribution company’s Business Continuity Plan, consider the following:

  • What are the essential functions of the business? These should be priorities to keep going when disaster hits.
  • What are some possible ways your business could be impacted? While you are preparing for the unknown, the fact is that it’s unlikely to be a blizzard in Florida or a hurricane in Montana. Consider disease outbreaks, cyberattacks, and common weather phenomenon for your area.
  • Create a contact list and determine who is on it, who has access, and how they will access it in different scenarios.
  • Make sure the plan has a guide for when to use it.
  • The plan should incorporate specific ways you can support resilience, recovery, and contingency.
  • Update the plan as key personnel change at the company.

Remember: Your goal is to reduce downtime and loss. Agility cites “the cost of business interruption varies from $5.8 million due to fire or explosion, $4.4 million due to a storm, or $0.55 million due to water damages. The longer the downtime, the higher the losses.”

What Should Distributors Include in a Disaster Recovery Planning Checklist?

Preparing for the unknown is a challenge, but it can be done successfully—and potentially save your business. Simply put, a disaster recovery plan is how you will respond if disaster hits. Here are a few inclusions:

  • Establish an off-site phone service to use if the on-site switchboard could be damaged.
  • If personnel could be at your facility during a disaster, there should be emergency supplies such as generators, flashlights, batteries, first aid kits, and more.
  • Have a plan for mission-critical data and application restoration post-disaster. The cloud can play an important role in getting you back up quickly.
  • Identify workflows that are dependent on other workflows, as well as processes in your organization that depend on external partners such as vendors.
  • Create a way to communicate if systems go down. For example, if you typically use email, set up a text blast before you need it.
  • Keep copies of key documents such as insurance policies in safe, separate location.
  • Test and update your plan regularly, and update as needed.

The Role of Cloud Technology

One of the core elements of any Business Continuity Plan and disaster planning is to know how to reduce or prevent interruptions to the company’s critical services so that business doesn’t stop. For distributors, these include taking and fulfilling orders, maintaining warehouse operations, collaborating with manufacturers, and communicating with customers.

The costs of not having a plan and experiencing significant downtime include:

  • lost revenue
  • loss of reputation when customers orders go unfulfilled
  • workforce shortage
  • regulation consequences

A cloud ERP can play a critical role in ensuring business operations keep rolling:

  • Mission-critical data is in the cloud. Restore your critical data to any location to get systems back online quickly. If all your data is onsite, a fire or flood or other natural disaster could wipe out years of critical information for the business.
  • Your team can keep working. When your team must be remote, they will still have access to necessary tools online so that operations continue seamlessly.
  • Quick recovery. When you have equipment onsite that needs to be relocated and set up, that takes time you don’t have. With data and applications in the cloud, you can get back up and running even as quickly as the same day.
  • Ensure security. The last thing you want to worry about when contending with the unexpected is your vulnerability. Cloud ERP solutions such as Dynamics 365 Finance and Supply Chain Management are highly secure, fed by billions of points of data that Microsoft uses to continually strengthen its systems.

Consider Microsoft Dynamics 365 Finance and Supply Chain Management to help with your Business Continuity Plan and disaster planning. Contact Sikich to learn how to assess your organization, build a plan for the unexpected, and strengthen your resiliency now.

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Jeremy Centner

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Business Continuity Plan Template for Logistics Companies

Business Continuity Plan Template for Logistics Companies

What is a Business Continuity Plan for Logistics Companies?

A Business Continuity Plan (BCP) for Logistics Companies is a strategy that outlines how the organization will continue to provide transportation, warehousing and distribution services during emergencies or disruptions to the supply chain. It includes the processes, procedures, and tools that logistics companies can use to identify potential risks, adjust operations accordingly and ultimately minimize any negative impacts on the business. This plan is essential for any logistics company to ensure the reliability and continuity of their services.

What's included in this Business Continuity Plan for Logistics Companies template?

  • 3 focus areas
  • 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Business Continuity Plan for Logistics Companies template for?

The Business Continuity Plan for Logistics Companies template is designed to help logistics and supply chain companies develop their business continuity plans. This template provides a structured approach to help companies identify risks, set objectives, assess progress, and ultimately increase the resilience of their operations.

1. Define clear examples of your focus areas

Focus areas are the main categories for the plan. They are typically broad topics or goals of the plan, such as 'Develop Business Continuity Plan' or 'Enhance Logistics Infrastructure'. Each focus area should have its own objectives, actions, and KPIs.

2. Think about the objectives that could fall under that focus area

Objectives are the specific goals or outcomes that the company wants to achieve under each focus area. Objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). Examples of some objectives for the focus area of Develop Business Continuity Plan could be: Improve Logistics and Supply Chain Resilience, and Increase Awareness of Supply Chain Risks.

3. Set measurable targets (KPIs) to tackle the objective

KPIs (Key Performance Indicators) are measurable targets that can be used to track progress towards achieving an objective. Each KPI should have an initial value, a target value, and a unit of measure. An example of a KPI for the focus area of Develop Business Continuity Plan could be: Reduce Business Impact from Unplanned Disruptions.

4. Implement related projects to achieve the KPIs

Projects or actions are the steps that need to be taken to achieve an objective. Each project should have a description of what needs to be done, a timeline for completion, and a list of resources needed to complete the project. An example of a project related to Develop Business Continuity Plan could be: Involve all BUs in BCP workshops.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade Strategy Execution Platform is an easy-to-use software that can help businesses develop, execute, and track their business continuity plans. Cascade provides an accessible way for companies to set objectives, define KPIs, and track progress toward achieving their goals.

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Distributing Your Business Continuity Plan: 10 Things to Consider

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When it comes to distributing your business continuity plans and crisis communication, there a few things you should contemplate:

  • Go mobile . Remember that 4.4 billion people will be using mobile apps by 2018. Think about how your employees are communicating. If they ’ re using smart phones, smart watches, tablets, text messaging, etc. then you need to harness these communication methods when distributing, updating and communicating your business continuity and corporate emergency plan.
  • Be pushy . In the event of a crisis, you need to push notifications to your team. Determine how you will send these push notifications - ensuring they will be read and followed.
  • Simple communication is key . Think of how they communicate now - email, text, Skype, Slack, phone - however they communicate with you on a day-to-day is how they’ll communicate during a time of crisis.
  • Don ’ t be last minute . As soon as your business continuity plan is ready and tested, distribute it to your team. There is nothing worse than last minute information and instructions - these are typically ignored and overlooked. Give your team the information they need well in advance.
  • If it ’ s not tested, don ’ t distribute it . Your employees need to trust the plan. They will only trust a plan that has been tested. Get them involved in this testing. Don’t forget to test your communication and distribution methods.
  • Be specific and personal . Make sure you distribute the right plant to the right person. Your office administrator needs to know different information than your delivery team.
  • Keep it simple . Just like your business continuity plan needs to be simple and straightforward - so too does your distribution method. Do your research and use the apps that can make distribution easy to do. If it’s complicated, your plan won’t be updated or distributed.
  • Be flexible . Remember that your plan will change and need to be updated. You need to make sure that you can communicate these updates quickly and easily. You also need to ensure that you can update your plan with the same tool that you use to distribute it.
  • Make it secure . You’ve got a lot of important information in your business continuity plan. Make sure that your distribution method is secure and protected. Don’t take chances with your business continuity plan.
  • Communicate clearly . This is the essence of all business operations - keep the communication lines open and clear . Make it clear how employees can access your business continuity plan. Get them involved in customizing the app and testing it on their mobile devices.

We want to hear from you! Do you have some suggestions to add to our list? Let us know below in the comments section. 

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Business Continuity: Ready, Set, Prepare

From labor slowdowns, port congestion, and power out­ages to wildfires, hurricanes, and terrorist attacks, we’ve seen no dearth of disasters that can shatter a company’s supply chain and transportation networks. Here’s how to plan for supply chain continuity—no matter what the obstacle.

As one hurricane after another took aim at Florida last summer, officials at TNT Logistics hunkered down in meetings. Their goal? Determine how best to keep their customers’ goods moving in spite of the wind, rain, and floods battering the region.

Once the expected path of a hurricane grew clear, “we got together regularly—usually once a day—to discuss what plans to put in action,” says Jeff Hurley, chief operating officer, TNT Logistics North America.

For example, when the National Hurricane Center predicted Hurricane Frances would pass directly through Jacksonville, TNT’s North American headquarters city, the company set up a contingency command center in Atlanta.

“We highlighted our communications requirements for that command center,” Hurley says. “We bought airline tickets for the TNT employees going to the command center. And we bought good-luck charms for those remaining in Jacksonville.”

From the terrorist attacks of September 2001, to a labor slowdown and massive congestion in West Coast ports, a widespread power outage in the Northeast, wildfires in the Southwest, last summer’s big rainstorms, and the recent tsunami in Southeast Asia, we’ve seen no dearth of disasters that can shatter a company’s supply and transportation networks.

Such events have spurred a growing interest in business continuity planning for the supply chain.

Years ago, when companies developed plans for business continuity or disaster recovery, “they were done strictly to get the auditors off your back,” says Steve Lipsky, director of Jacksonville-based SLA Contingency Planners, which provides consulting services to third-party logistics provider TNT. “But today, all you have to do is watch the news. The what-ifs are realities.”

The risk of disruption is especially high in this era of taut supply chains, says Jeffrey Karrenbauer, CEO of Manassas, Va.-based Insight Inc., which is adding new vulnerability planning tools to its supply chain planning software products.

“There’s very little room for error, because a lot of facilities have been eliminated,” Karrenbauer says. “Many programs—just-in-time manufacturing, efficient consumer response, and vendor managed inventory, for example—are predicated on very rapid response, and on nothing going wrong.”

All Kinds of Crises

High-profile events such as hurricanes and blackouts pose only part of the risk to the supply chain. Many other disruptions keep goods and materials from reaching factories, distribution centers, and stores.

“A technology interruption is the first thing that comes to most people’s minds,” says Hurley. That’s an important focus for TNT, he says, because the 3PL relies so heavily on information technology to support its clients.

Transportation interruptions are another obvious concern. A storm less dramatic than a hurricane—perhaps a heavy snowfall—can close a highway or rail line. So can an accident, says Peter Masterman, vice president of logistics and customer service at Nova Chemicals in Pittsburgh. “In some cases, accidents have shut down an entire rail’s main line,” he says.

Companies must watch for a host of vendor difficulties, from production line breakdowns to business failures. Some executives also look for vulnerabilities not only among their own vendors, “but up to their third-tier supplier organizations,” says George Zsidisin, assistant professor of supply chain management at Michigan State University, and co-author of a study on effective practices in business continuity planning for the supply chain.

Watching for problems such as financial instability—and developing alternative sources just in case—can protect the inbound supply flow, Zsidisin says.

Problems at a customer’s facility may also disrupt the supply chain, at least for companies such as Nova that sell in large quantities to relatively few trading partners, Masterman says.

“When a large customer shuts down unexpectedly, and you haven’t discretely planned for that, you might not have a home for the product and it backs up into the system,” he says. “If you can’t sell it or move it, you might have to shut your own plant down.”

Equipment shortages caused by unexpected jumps in demand, and random security inspections at border crossings, cause supply chain disruptions as well, Masterman says.

One type of disaster that companies often overlook is the sudden loss of employees whose knowledge and skills are essential to the operation, says Lipsky. An illness, death, job change, or strike may leave a firm without key personnel.

Making Plans

Keys to planning for supply chain continuity include:

  • Thinking through all the potential disruptions that might strike your company.
  • Analyzing how each of these might affect operations.
  • Developing backup processes and contingency plans that you can immediately put into action when a disruption occurs.
  • Reviewing and updating plans as circumstances require.

Working with TNT, SLA Contingency Planners examines the work flow involved in servicing each of the 3PL’s clients.

“We look at communications strategies, procedures, vendor information, and resources, and put together strategies to make sure we will have delivery of those services,” Lipsky says.

Strategies might include: installing generators in case power goes out; installing backup servers to run key software applications; securing backup vendors for crucial supplies; making sure vendors have alternative plans for delivering goods; and cross-training employees so they can take over one another’s work.

To make sure the plan is effective, a company can test its strategies through tabletop exercises or live drills. For example, “periodically, we conduct a variety of tests on our technology, including shutting down the systems and allowing backup to take place,” Hurley says.

The Automotive Industry Action Group (AIAG) offers automotive suppliers a one-day course on crisis management and business recovery, based on a process document created by DaimlerChrysler, Ford, and General Motors. The Big Three developed the process to protect their own inbound supply chains, and in many cases they require their suppliers to implement crisis management plans as well.

A spate of natural disasters that hit the United States in recent years prompted the automakers to develop the process, says Morris Brown, product manager for materials management at AIAG, Southfield, Mich.

The AIAG course walks participants through methods for assembling a crisis management team, getting support from upper management, establishing an emergency command center, assigning responsibility for different tasks, defining communications protocols, and coordinating the response with local government authorities.

Four Elements for Continuity

At Michigan State, researchers studied four companies that developed effective plans to protect the integrity of their inbound supply chains. From those companies’ practices, the researchers derived a framework for supply chain business continuity planning. It includes four elements: awareness, prevention, remediation, and knowledge management.

1. Awareness. Understanding that supply chain interruptions can occur is a concept one cannot take for granted, Zsidisin says. To build awareness, planners must educate stakeholders within the organization, communicate expectations to vendors, and investigate vendors to make sure they are capable of meeting the company’s needs.

2. Prevention. This step includes identifying and prioritizing possible risks and devising strategies to reduce them—such as developing alternative sources for goods and materials, and putting backup transportation plans in place. It also means monitoring developments that could increase or decrease the risk of various disruptions.

“These developments might include changes in the economic or political environment, changes in supply markets, or the status of individual suppliers,” the study says.

3. Remediation. Despite a company’s best efforts to prevent them, disruptions sometimes occur, and officials must do their best to control the consequences, Zsidisin says. That’s where remediation comes in. In this step, “time is absolutely critical,” he says. Companies should establish a team in advance to resolve problems when they arise.

4. Knowledge management. The last step is to analyze how a crisis was handled, and what can be learned from the experience. “After a crisis, companies need to share the good, the bad, and the ugly” and apply that knowledge in the future, Zsidisin says.

Nova developed four tools to help manage the supply chain in a crisis. The first is the “freight universe,” a large database of all the company’s shipment transactions.

“When you’re in a situation that wasn’t anticipated, the first thing you do is go to that database” for information to support a crisis response, Masterman says. The data might indicate, for example, how much business a company does with different customers, or how feasible it would be to switch a given customer’s deliveries from truck to rail.

Nova has also established a “situation communications protocol”—a document outlining who should talk with whom during a crisis. Nova used the document in January 2004, when a strike at Canadian National (CN) meant the railroad couldn’t handle all the chemical company’s freight.

The Right Messages

Without a communications protocol, efforts would have been duplicated, explains Masterman.

“Some of our plants would have called the railroad, as well as employees in the logistics, customer service, and marketing departments,” and officials at CN would be left wondering what Nova really wants, Masterman says. The protocol makes sure the right people communicate the right messages to the people who need the information.

The third tool is a carrier stewardship program, including a series of regular meetings with major carriers to discuss important business issues. These meetings strengthen the relationship between key officials at the shipper and the carrier, making it easier for them to cooperate when a crisis arises, Masterman says.

A similar program to strengthen ties between Nova’s logistics operation and organizations within the company that rely on its services was developed as the fourth tool. When a supply chain disruption occurs, “having relationships with our internal businesses is extremely helpful,” says Masterman.

Many of Insight’s clients use its SAILS 21 strategic planning software to identify weak points in the supply chain, develop backup strategies, and determine how cost-effective those strategies are.

Often, it’s not obvious where the vulnerabilities lie, “and looking at just the biggest facility can be a mistake,” Karrenbauer says. “The idea is to carefully establish where the major vulnerabilities are. The analysis should also include an assessment of the cost, the capacity, and the service impact of every facility we could lose.”

Capacity Outweighs Cost

Questions of capacity and service may outweigh questions of cost, Karrenbauer says. If loss of a major facility makes it impossible to deliver product, or to meet customer service expectations, “cost almost becomes secondary,” he says.

But it’s still important. A backup strategy—whether adding production facilities, relocating distribution centers, or cultivating secondary supply sources—carries a price tag, “and management wants to know how much,” Karrenbauer says. “We like to think of this as buying insurance”—incurring a cost to implement a crucial safety net.

Using the planning software, a company can weigh the advantages of building different kinds of redundancy into its supply chain, figure out how to redesign its network to include backup facilities, and gauge the cost of each potential solution.

For TNT Logistics, last summer’s hurricanes brought ample opportunity to test its business continuity plans. In addition to setting up a contingency facility in Atlanta, the company scrambled to complete the week’s work at its Jacksonville headquarters before it released employees to prepare their homes for Hurricane Frances’ expected landfall.

“We estimated payroll, ran it early, and shipped checks to the field locations prior to any sort of immediate impact,” Hurley says. TNT also made sure officials could communicate if the storm knocked out the landline phone network.

“I think we got a little carried away with communications,” bringing in cell phones and satellite phones, Hurley recalls.

The impending storms put special pressure on one of TNT’s customers, Florida Power and Light (FP&L), based in Juno Beach, Fla. TNT operates a call center in Jacksonville to manage the utility’s shipments from suppliers to its service depots throughout south Florida. As a storm approached, TNT moved some of that center’s staff to another TNT location outside the impact zone so they could continue working, Hurley says.

In addition, TNT moved the parts and supplies FP&L would need to fix power lines downed by the storms. “We brought in external management from other locations to help support the higher demand that occurred once the storms passed through,” Hurley says.

To make sure fresh drivers were available as needed, TNT shared trucks between FP&L and Home Depot, another Florida customer that saw a storm-inspired surge in demand.

Insight Network Logistics (INL, no relation to Insight Inc.), a subsidiary of Union Pacific that manages the plant-to-dealer distribution network for DaimlerChrysler in the United States, has prepared for hurricanes with help from simulation software. The Auburn Hills, Mich., firm worked with Simulation Dynamics to develop its VinLogic modeling system.

INL uses another information system, VinVision, to collect data on the status of all vehicles moving through the distribution pipeline. VinLogic combines this vehicle location data with plant production schedules, projections about where the vehicles will be shipped, data on available transportation equipment, and other information to forecast the future flow of vehicles through the network, says Andrew Siprelle, president of Simulation Dynamics, Maryville, Tenn.

Tactical Uses

INL uses the software mainly to anticipate bottlenecks and predict what resources it will need to keep the vehicles moving, says Roland Fortner, INL’s CEO. “But it has a lot of tactical uses, and hurricane planning is one of them,” he says. INL first used VinLogic for this purpose in 2003, as Hurricane Isabel threatened the mid-Atlantic coast.

“When you’ve got a hurricane coming, you first shut down your shipping activities in the areas that are directly affected,” Fortner says.

But manufacturing plants continue building vehicles. These need to keep moving, “but at the same time, you don’t want to ship vehicles into a situation where they’ll be destroyed,” he says.

To predict the effect of a hurricane, INL looks at its expected path and predicts how that will impact transportation facilities in the region. It then adds those constraints to the data VinLogic uses to forecast the flow of vehicles.

“For example, suppose we don’t think we will be able to unload for at least a week at three or four locations,” Fortner says. “What does that do to us? How many vehicles pile up? Where will we see the largest congregation of cars?”

Once the company knows where problems will occur, it can consider its options, and use the simulation software to test them.

“Sometimes we stop shipping vehicles into certain facilities and hold them at origin,” Fortner explains. “Other times we make arrangements with railroads to stop and hold the vehicles en route. But in some cases, we actually divert vehicles to alternate facilities.”

Averting Problems

If INL learns of a potential disruption far enough in advance, the company might even adjust its production schedule to avert the problem completely, he says.

Along with hurricanes, the model could help plan a response to other predictable disruptions, such as strikes, Fortner says. Like Nova Chemicals, Constellation Wines USA, based in Canandaigua, N.Y., has seen efforts to build close relationships with carriers pay off in times of crisis.

Forging such relationships is “a process we started in earnest about 15 years ago,” says Rod Dutton, Constellation’s director of transportation management. “We set up a program that included all of the activities we could think of to make ourselves a good shipper.”

For example, the company tried to accommodate carriers’ needs when scheduling pickups; improved its loading, blocking, and bracing techniques; and made sure drivers had easy access to comforts such as phones, vending machines, and bathrooms.

“Over the years, we continue to develop practices that enhance our relationships with carriers,” Dutton says. “We pay our freight bills on time, and offer only standard, legal-weight loads that are balanced and blocked properly within the trailer. We provide scales to weigh the shipments, EDI (electronic data interchange) freight bills, and EFT (electronic funds transfer) payment.”

Constellation gives carriers an estimated volume of shipments per lane and a weekly forecast of orders for the following week, Dutton says. Recently it has offered them the opportunity to bid on lanes for its sister company, Constellation Beers and Spirits.

In return for such efforts, carriers work hard to help Constellation in the fall, when wine shipments from California vie for scarce capacity with holiday merchandise shipped through West Coast ports. Goodwill between the wine company and its carriers grew particularly important in the fall of 2003, when forest fires in California closed rail lines, making it even harder to move freight out of the region.

“If the tracks are closed, and you need a rail shipment, there’s not much carriers can do,” Dutton says. “But when the crisis is over, they can provide a higher priority to your freight.”

Constellation’s intermodal service providers did just that. “Once the tracks started opening, they tried to make sure our freight moved along as quickly as possible. They expedited whatever they could,” he says.

Tough Lessons

Sometimes, a bad experience during one disaster prompts a company to make better plans for the next.

One Insight client in the Midwest learned its lesson when huge floods hit and inundated one of its large distribution centers. While it was too late to prepare for that crisis, the company used SAILS 21 to analyze how losing that facility affected its distribution network, and how best to compensate.

“Now they’ve done the analysis, and they’ve done it more carefully,” so if a similar disaster occurs they will be prepared, Karrenbauer says.

Other companies used the software to choose alternatives when the work slowdown of 2003 clogged traffic at the ports of Los Angeles and Long Beach. The contingency plans developed at that time served companies well during the recent congestion in the California ports, Karrenbauer says. The software helped them calculate the most effective way to divert traffic further up the West Coast or to the Gulf Coast.

Although many company officials who ought to focus on questions of supply chain continuity haven’t paid enough attention in the past, Karrenbauer believes things are getting better. “It has been a tough process,” he says. “But I think the ideas are gaining some traction.”

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What Is A Business Continuity Plan? [+ Template & Examples]

Swetha Amaresan

Published: December 30, 2022

When a business crisis occurs, the last thing you want to do is panic.

executives discussing business continuity plan

The second-to-last thing you want to do is be unprepared. Crises typically arise without warning. While you shouldn't start every day expecting the worst, you should be relatively prepared for anything to happen.

A business crisis can cost your company a lot of money and ruin your reputation if you don't have a business continuity plan in place. Customers aren't very forgiving, especially when a crisis is influenced by accidents within the company or other preventable mistakes. If you want your company to be able to maintain its business continuity in the face of a crisis, then you'll need to come up with this type of plan to uphold its essential functions.

Free Download: Crisis Management Plan & Communication Templates

In this post, we'll explain what a business continuity plan is, give examples of scenarios that would require a business continuity plan, and provide a template that you can use to create a well-rounded program for your business.

Table of Contents:

What is a business continuity plan?

  • Business Continuity Types
  • Business Continuity vs Disaster Recovery

Business Continuity Plan Template

How to write a business continuity plan.

  • Business Continuity Examples

A business continuity plan outlines directions and procedures that your company will follow when faced with a crisis. These plans include business procedures, names of assets and partners, human resource functions, and other helpful information that can help maintain your brand's relationships with relevant stakeholders. The goal of a business continuity plan is to handle anything from minor disruptions to full-blown threats.

For example, one crisis that your business may have to respond to is a severe snowstorm. Your team may be wondering, "If a snowstorm disrupted our supply chain, how would we resume business?" Planning contingencies ahead of time for situations like these can help your business stay afloat when you're faced with an unavoidable crisis.

When you think about business continuity in terms of the essential functions your business requires to operate, you can begin to mitigate and plan for specific risks within those functions.

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Crisis Communication and Management Kit

Manage, plan for, and communicate during your corporate crises with these crisis management plan templates.

  • Free Crisis Management Plan Template
  • 12 Crisis Communication Templates
  • Post-Crisis Performance Grading Template
  • Additional Crisis Best Management Practices

You're all set!

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Business Continuity Planning

Business continuity planning is the process of creating a plan to address a crisis. When writing out a business continuity plan, it's important to consider the variety of crises that could potentially affect the company and prepare a resolution for each.

Business Continuity Plan

Type: Technological

Say your network goes down in the middle of the day and employees are unable to access the internet or dial out with their phones.

Do you have an information technology department that can quickly diagnose the issue? If you don't, do you know the numbers of your ISP provider so that you can quickly get them on the phone and resolve the issue?

You can't always anticipate unexpected errors, but you can put a process in place to handle them swiftly and effectively. The table above is an example of a backup strategy that businesses can use in a crisis.

Here are some examples of tech-related business continuity issues:

  • Unplanned internet or telecom outages
  • Hardware/software failures

3. Business Continuity Plan Example for Revenue Loss

business continuity plan example: operational: economic

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How a Digital-Led Business Continuity Plan Benefits Your Warehouse

Written by Gina Daniel-Lee

Until March 2020, most business continuity plans focused on things like the chance of fire, natural disasters, and cyber attacks. Few foresaw a global health crisis on the scale of COVID-19 and the incredible levels of disruption it brought. Now, company leaders  are vowing not to be caught out again . Their business continuity plan checklists include everything from rethinking how to maintain resilient supply chains to building in the nimbleness needed to keep operating in a world where social distancing is required. 

While many organizations were able to transition numbers of employees to work-from-home when the pandemic began, that wasn’t possible for frontline workers in warehouses, distribution centers, and manufacturing. Companies that had to keep workers on-premises adopted tactics to improve safety and reduce the risk of transmission. Not only was Personal Protection Equipment (PPE) like masks used, but groups of employees were segmented so they only interacted with their limited team. Workspaces were clearly delineated with solutions ranging from simple tape on the floor to plexiglass dividers. Rigorous cleaning of shared workspaces, surfaces, and devices was done between shifts. 

Zebra  Motion W orks  Proximity  

Finding better solutions to improve safety for frontline workers was a top priority early in the pandemic for  Zebra Technologies . What they came up with not only worked during the pandemic, it also offered opportunities for business continuity, warehouse modernization, and digital transformation. 

With its  MotionWorks Proximity  solution, Zebra is able to increase social distancing and offer useful data that leads to better safety and workflows. No extra hardware is required for organizations already using Zebra devices. The first part of the system is a proximity alert. “When two individuals get within two meters or six feet of each other, the solution will give an audible alert or haptic alert vibration to let the individuals know that they’ve moved within that six-foot space,” explained Mike Frank, Solution Product Manager on the Zebra Intelligent Edge Solutions Team. 

If the employees ignore or are unable to comply with the alert, then the event is logged in the system. That may simply be a matter for human resources to address, but the data also shows when there are continuous problem areas. “The organization can potentially redesign the workflows to reduce the need for those people to be in close proximity,” Frank said. 

If someone does become infected, the data gathered by the system can also be used for contact tracing to help limit further spread. Lastly, the system tracks device cleaning to ensure common devices are sanitized before they’re passed to the next person. 

The Bigger Picture  

Having a system like MotionWorks Proximity in place is valuable beyond business continuity planning because the data can be used in other areas. “Simply having a better way to track employees for safety purposes, for workload evaluation purposes, and communication purposes can drive better supply chain organization,” offered Jennifer Springer, Zebra’s Senior Director of Distribution Center Operations and Logistics. 

Proximity is part of Zebra’s larger family of MotionWorks solutions that are driving modernization and digital transformation in warehouse, distribution, and manufacturing organizations and include: 

  • MotionWorks  Warehouse  – Offers near real-time asset location and tracking to automate transactions and eliminate errors. It’s designed to make warehouse operations smarter and faster—which leads to happier customers 
  • MotionWorks  Material  – Manages material replenishment throughout manufacturing operations to increase efficiency and deliver valuable insights. It speeds delivery, reduces downtime, and improves the bottom line 
  • MotionWorks  Yard  – facilitates the continuous flow of items within transportation systems, distribution centers, or manufacturing plants. It improves speed, productivity, and ensures the right trailer arrives at the right door at the right time. 

Combine Business Continuity Planning with Other Goals  

A survey by McKinsey  done nine months into the pandemic shows how it dramatically sped up digital technology adoption. Beyond the digital transformation required for effective remote work, executives reported their companies “accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years.” 

McKinsey concludes that technology has taken on greater strategic importance post-pandemic—beyond just providing cost efficiencies—and that organizations that want to stay competitive must embrace new strategies and practices. 

The good news is that many of the advantages you gain from digital transformation also help improve business continuity because they make the organization more nimble. Zebra’s solutions—for example—improve productivity and efficiency while also offering enhanced worker safety. 

New operating models that leverage a digital-first approach make an organization more competitive now and more resilient in a crisis. It’s a win-win.  

About the Author

business continuity plan for distribution center

Gina Daniel-Lee

VP, Strategic Alliances & Partnerships

Gina leverages a 30-year career in technology providing relationship-building leadership for Stratix. She began her career working for some of the largest brands in the industry including Nortel Networks, ADC Telecom, Intel and Symbol Technologies where she held leadership roles supporting both partner and end user revenue growth.

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How to create an effective business continuity plan

A business continuity plan outlines procedures and instructions an organization must follow in the face of disaster, whether fire, flood, or cyberattack. Here’s how to create a plan that gives your business the best chance of surviving such an event.

Professional Meeting: Senior Businesswoman and Colleague in Discussion

The tumultuous events of the past several years have impacted practically every business. And with the number of extreme weather events, cyberattacks, and geopolitical conflicts continuing to rise, business leaders are bracing for the possibility of increasingly more frequent impactful incidents their organizations will need to respond to.

According to PwC’s 2023 Global Crisis and Resilience Survey , 96% of 1,812 business leaders said their organizations had experienced disruption in the past two years and 76% said their most serious disruption had a medium to high impact on operations.

It’s little wonder then that 89% of executives list resilience as one of their most important strategic priorities.

Yet at the same time, only 70% of respondents said they were confident in their organization’s ability to respond to disruptions, with PwC noting that its research shows that too many organizations “are lacking the foundational elements of resilience they need to be successful.”

A solid business continuity plan is one of those foundational elements.

“Every business should have the mindset that they will face a disaster, and every business needs a plan to address the different potential scenarios,” says Goh Ser Yoong, head of compliance at Advance.AI and a member of the Emerging Trends Working Group at the professional governance association ISACA.

A business continuity plan gives the organization the best shot at successfully navigating a disaster by providing ready-made directions on who should do what tasks in what order to keep the business viable.

Without such as a plan, the organization will take longer than necessary to recover from an event or incident — or may never recover at all.

What is a business continuity plan?

A business continuity plan (BCP) is a strategic playbook created to help an organization maintain or quickly resume business functions in the face of disruption, whether that disruption is caused by a natural disaster, civic unrest, cyberattack, or any other threat to business operations.

A business continuity plan outlines the procedures and instructions that the organization must follow during such an event to minimize downtime, covering business processes, assets, human resources, business partners, and more.

A business continuity plan is not the same as a disaster recovery plan , which focuses on restoring IT infrastructure and operations after a crisis. Still, a disaster recovery plan is part of the overall strategy to ensure business continuity, and the business continuity plan should inform the action items detailed in an organization’s disaster recovery plan. The two are tightly coupled, which is why they often are considered together and abbreviated as BCDR.

Why business continuity planning matters

Whether you operate a small business or a large corporation, it’s vital to retain and increase your customer base. There’s no better test of your capability to do so than right after an adverse event.

Because restoring IT is critical for most companies, numerous disaster recovery solutions are available. You can rely on IT to implement those solutions. But what about the rest of your business functions? Your company’s future depends on your people and processes. Being able to handle any incident effectively can have a positive effect on your company’s reputation and market value, and it can increase customer confidence.

Moreover, there are increasing consumer and regulatory expectations for both enterprise security and continuity today. Consequently, organizations must prioritize continuity planning to prevent not only business losses, but financial, legal, reputational, and regulatory consequences.

For example, the risk of having an organization’s “license to operate” withdrawn by a regulator or having conditions applied (retrospectively or prospectively) can adversely affect market value and consumer confidence.

Building (and updating) a business continuity plan

Whether building the organization’s first business continuity plan or updating an existing one, the process involves multiple essential steps.

Assess business processes for criticality and vulnerability: Business continuity planning “starts with understanding what’s most important to the business,” says Joe Nocera, principle in the cyber risk and regulatory practice at PwC, a professional services firm.

So the first step in building your business continuity plan is assessing your business processes to determine which are the most critical; which are the most vulnerable and to what type of events; and what are the potential losses if those processes go down for a day, a few days, or a week.

“This step essentially determines what you are trying to protect and what you are trying to keep up for systems,” says Todd Renner, senior managing director in the cybersecurity practice at FTI Consulting.

This assessment is more demanding than ever before because of the complexity of today’s hybrid workplace, the modern IT environment, and the reliance on business partners and third-party providers to perform or support critical processes.

Given that complexity, Goh says a thorough assessment requires an inventory of not only key processes but also the supporting components — including the IT systems, networks, people, and outside vendors — as well as the risks to those components.

This is essentially a business impact analysis.

Determine your organization’s RTO and RPO: The next step in building a business continuity plan is determining the organization’s recovery time objective (RTO), which is the target amount of time between point of failure and the resumption of operations, and the recovery point objective (RPO), which is the maximum amount of data loss an organization can withstand.

Each organization has its own RTO and RPO based on the nature of its business, industry, regulatory requirements, and other operational factors. Moreover, different parts of a business can have different RTOs and RPOs, which executives need to establish, Nocera says.

“When you meet with individual aspects of the business, everyone says everything [they do] is important; no one wants to say their part of the business is less critical, but in reality you have to have those challenging conversations and determinations about what is actually critical to the business and to business continuity,” he adds.

Detail the steps, roles, and responsibilities for continuity: Once that is done, business leaders should use the RTO and the RPO, along with the business impact analysis, to determine the specific tasks that need to happen, by whom, and in what order to ensure business continuity.

“It’s taking the key components of your analysis and designing a plan that outlines roles and responsibilities, about who does what. It gets into the nitty-gritty on how you’re going to keep the company up and running,” Renner explains.

One common business continuity planning tool is a checklist that includes supplies and equipment, the location of data backups and backup sites, where the plan is available and who should have it, and contact information for emergency responders, key personnel, and backup site providers.

Although the list of possible scenarios that could impact business operations can seem extensive, Goh says business leaders don’t have to compile an exhaustive list of potential incidents. Rather, they should compile a list that includes likely incidents as well as representative ones so that they can create responses that have a higher likelihood of ensuring continuity even when faced with an unimagined disaster.

“So even if it’s an unexpected event, they can pull those building blocks from the plan and apply them to the unique crisis they’re facing,” Nocera says.

The importance of testing the business continuity plan

Devising a business continuity plan is not enough to ensure preparedness; testing and practicing are other critical components.

Renner says testing and practicing offer a few important benefits.

First, they show whether or how well a plan will work.

Testing and practicing help prepare all stakeholders for an actual incident, helping them build the muscle memory needed to respond as quickly and as confidently as possible during a crisis.

They also help identify gaps in the devised plan. As Renner says: “Every tabletop exercise that I’ve ever done has been an eye-opener for everyone involved.”

Additionally, they help identify where there may be misalignment of objectives. For example, executives may have deprioritized the importance of restoring certain IT systems only to realize during a drill that those are essential for supporting critical processes.

Types and timing of tests

Many organizations test a business continuity plan two to four times a year. Experts say the frequency of tests, as well as reviews and updates, depends on the organization itself — its industry, its speed of innovation and transformation, the amount of turnover of key personnel, the number of business processes, and so on.

Common tests include tabletop exercises , structured walk-throughs, and simulations. Test teams are usually composed of the recovery coordinator and members from each functional unit.

A tabletop exercise usually occurs in a conference room with the team poring over the plan, looking for gaps and ensuring that all business units are represented therein.

In a structured walk-through, each team member walks through his or her components of the plan in detail to identify weaknesses. Often, the team works through the test with a specific disaster in mind. Some organizations incorporate drills and disaster role-playing into the structured walk-through. Any weaknesses should be corrected and an updated plan distributed to all pertinent staff.

Some experts also advise a full emergency evacuation drill at least once a year.

Meanwhile, disaster simulation testing — which can be quite involved — should still be performed annually. For this test, create an environment that simulates an actual disaster, with all the equipment, supplies and personnel (including business partners and vendors) who would be needed. The purpose of a simulation is to determine whether the organization and its staff can carry out critical business functions during an actual event.

During each phase of business continuity plan testing, include some new employees on the test team. “Fresh eyes” might detect gaps or lapses of information that experienced team members could overlook.

Reviewing and updating the business continuity plan should likewise happen on an ongoing basis.

“It should be a living document. It shouldn’t be shelved. It shouldn’t be just a check-the-box exercise,” Renner says.

Otherwise, plans go stale and are of no use when needed.

Bring key personnel together at least annually to review the plan and discuss any areas that must be modified.

Prior to the review, solicit feedback from staff to incorporate into the plan. Ask all departments or business units to review the plan, including branch locations or other remote units.

Furthermore, a strong business continuity function calls for reviewing the organization’s response in the event of an actual event. This allows executives and their teams to identify what the organization did well and where it needs to improve.

How to ensure business continuity plan support, awareness

One way to ensure your plan is not successful is to adopt a casual attitude toward its importance. Every business continuity plan must be supported from the top down. That means senior management must be represented when creating and updating the plan; no one can delegate that responsibility to subordinates. In addition, the plan is likely to remain fresh and viable if senior management makes it a priority by dedicating time for adequate review and testing.

Management is also key to promoting user awareness. If employees don’t know about the plan, how will they be able to react appropriately when every minute counts?

Although plan distribution and training can be conducted by business unit managers or HR staff, have someone from the top kick off training and punctuate its significance. It’ll have a greater impact on all employees, giving the plan more credibility and urgency.

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Business Continuity Planning

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Organize a business continuity team and compile a  business continuity plan  to manage a business disruption. Learn more about how to put together and test a business continuity plan with the videos below.

Business Continuity Plan Supporting Resources

  • Business Continuity Plan Situation Manual
  • Business Continuity Plan Test Exercise Planner Instructions
  • Business Continuity Plan Test Facilitator and Evaluator Handbook

Business Continuity Training Videos

The Business Continuity Planning Suite is no longer supported or available for download.

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Business Continuity Training Introduction

An overview of the concepts detailed within this training. Also, included is a humorous, short video that introduces viewers to the concept of business continuity planning and highlights the benefits of having a plan. Two men in an elevator experience a spectrum of disasters from a loss of power, to rain, fire, and a human threat. One man is prepared for each disaster and the other is not.

View on YouTube

Business Continuity Training Part 1: What is Business Continuity Planning?

An explanation of what business continuity planning means and what it entails to create a business continuity plan. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about what business continuity planning means to them.

Business Continuity Training Part 2: Why is Business Continuity Planning Important?

An examination of the value a business continuity plan can bring to an organization. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about how business continuity planning has been valuable to them.

Business Continuity Training Part 3: What's the Business Continuity Planning Process?

An overview of the business continuity planning process. This segment also incorporates an interview with a company about its process of successfully implementing a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 1

The first of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “prepare” to create a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 2

The second of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “define” their business continuity plan objectives.

Business Continuity Training Part 3: Planning Process Step 3

The third of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “identify” and prioritize potential risks and impacts.

Business Continuity Training Part 3: Planning Process Step 4

The fourth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “develop” business continuity strategies.

Business Continuity Training Part 3: Planning Process Step 5

The fifth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should define their “teams” and tasks.

Business Continuity Training Part 3: Planning Process Step 6

The sixth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “test” their business continuity plans. View on YouTube

Last Updated: 12/21/2023

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Disaster Recovery and Business Continuity Plan Saved $40 Million

Outside of a distribution center with doors for tractor trailers

A food and beverage distribution company had aggressive plans to expand its business by 40% over four years. In order to achieve this goal, the company recognized that it needed to modernize and position its IT to support this growth.

This wasn’t an easy task as IT historically was viewed as a cost center. Executives had not invested in infrastructure or solutions for more than 12 years. The result was a very dated environment with applications and infrastructure no longer eligible for maintenance or support.

To help move the project in the right direction, the company brought me in as an IT leader to define a strategy and road map for the next three years. In this article, I’ll explain the steps we took to create the strategy and road map, along with some lessons learned along the way.

Defining and Selling the IT Strategy and Road Map

This was the first time this company put in place an IT strategy and road map, so it was difficult to get corporate buy-in. It was important to include the C-suite and business leaders in the planning process to make sure we had a good understanding of what was important and how to move forward.

The first initiative we identified was to implement disaster recovery (DR) and business continuity planning (BCP). The company was also working on an SAP upgrade from SAP ECC 5.0 to SAP ECC 6.0 SP7 on an IBM iSeries. Although there were daily tape backups, there was nothing to restore the backup to. The company had no plan in place to continue to operate if it lost the main data center and its SAP applications. This was a huge risk.

We had to work to explain the risk and the need for the disaster recovery and business continuity plan. Part of the process was explaining the financial impact that such a risk can have on the company. Eventually, we did get buy-in and began to implement the plan.

From Building to Implementing the Disaster Recovery and Business Continuity Plan

The IT initiative would first address the disaster recovery plan and then the business continuity plan.

The disaster recovery portion was more technical in nature. We worked with our SAP partner to implement a backup site for our SAP instances. This involved determining the size and capacity of the remote instance and making sure it would have the capacity to support the remote offices if we needed to fail over to it.

We also needed to increase the bandwidth from our primary data center to our partner’s data center. This was necessary because we had a replication agent running on the iSeries that sent SAP updates to the remote instance. The non-SAP applications critical to running the business were virtualized. We needed confirmation that our virtualized environment was being replicated to our backup data center and that the backups would work if we needed to use them.

The business continuity portion of the plan required more strategy. The VP of operations was involved to help engage and align the business units and corporate functions, including HR and finance, among others. The IT department and the business units worked together to define the procedures and steps to execute if a catastrophic event were to occur. We then communicated these procedures to the business, which included defining key roles, responsibilities, and alternate facilities where we would run during a disaster.

With all the pieces in place, the last phase focused on testing. We needed to know we were prepared to execute. This required several tests where we stopped the system to replicate an outage and failed over to our backup instance. We validated our systems by running reports and going online to check things that were defined in our test plans, such as orders and financials. Once we were successful in validating our results, we implemented the solution.

Putting the Business Continuity Plan to the Test in Real Time

With a dated infrastructure environment, one item among many that needed to be updated was the backup battery system for the data center. The system was updated, and everything seemed to operate as normal. The next day, however, my network administrators reported a fire in the data center.

We needed to shut things down but could not get to the electrical panel in the back of the room. We decided to close the doors and evacuate. We immediately implemented the business continuity plan we had just finalized and dispatched our sales teams to an alternate location. The next step was to implement the disaster recovery plan. With the help of our SAP partner, we were able to execute the plan right away. We executed the disaster recovery and business continuity plan within 20 minutes.

After assessing the damage, we found the data center was unrecoverable. We lost the servers, switches, iSeries, telephones, battery backup, and the inventory of laptops and parts. We assembled the IT team and started to bring up the non-SAP applications from our backup facility. The IT team validated the connectivity between applications, SAP, and the various databases. The sales teams were already at the remote office location resuming order entry and processing orders. The only issue we experienced was lost access to a non-critical application due to a recent password change in the active directory. We continued to monitor all the systems to make sure everything was running properly. Later that evening, the team confirmed that all orders and deliveries were processed on our normal schedule.

Resuming Business as Normal Post-Disaster

Never in a million years would I ever have expected to encounter a disaster that would require us to implement our contingency plan. Because of the work we did to plan, the company continued to operate on our backup facilities for 40 days. We needed to restore our network infrastructure, servers, and the iSeries in our main data center.

The company did roughly $1 million in orders per day. We were able to save the company a significant amount of money by having our Disaster Recovery and Business Continuity Plan in place. Something that is probably more important than money is the company’s reputation with its customers. We were able to continue to take care of our customers as if nothing had ever happened. Quite an accomplishment, with all things considered—all thanks to having a plan in place.

Learn more on how to respond to uncertainty in “ CIOs Discuss How to Navigate the Uncertainty of COVID-19 .” We welcome all ASUG members to submit their ideas for blogs they would like to write.

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Blog Business

7 Business Continuity Plan Examples

By Danesh Ramuthi , Nov 28, 2023

Business Continuity Plan Examples

A business continuity plan (BCP) is a strategic framework that prepares businesses to maintain or swiftly resume their critical functions in the face of disruptions, whether they stem from natural disasters, technological failures, human error, or other unforeseen events.

In today’s fast-paced world, businesses face an array of potential disruptions ranging from cyberattacks and ransomware to severe weather events and global pandemics. By having a well-crafted BCP, businesses can mitigate these risks, ensuring the safety and continuity of their critical services and operations.

Responsibility for business continuity planning typically lies with top management and dedicated planning teams within an organization. It is a cross-functional effort that involves input and coordination across various departments, ensuring that all aspects of the business are considered.

For businesses looking to develop or refine their business continuity strategies, there are numerous resources available. Tools like Venngage’s business plan maker and their business continuity plan templates offer practical assistance, streamlining the process of creating a robust and effective BCP. 

Click to jump ahead: 

7 business continuity plan examples

Business continuity types, how to write a business continuity plan, how often should a business continuity plan be reviewed, business continuity plan vs. disaster recovery plan, final thoughts.

In business, unpredictability is the only certainty. This is where business continuity plans (BCPs) come into play. These plans are not just documents; they are a testament to a company’s preparedness and commitment to sustained operations under adverse conditions. To illustrate the practicality and necessity of these plans, let’s delve into some compelling examples.

Business continuity plan example for small business

Imagine a small business specializing in digital marketing services, with a significant portion of its operations reliant on continuous internet connectivity and digital communication tools. This business, although small, caters to a global clientele, making its online presence and prompt service delivery crucial.

Business Consultant Continuity Plan Template

Scope and objective:

This Business Continuity Plan (BCP) is designed to ensure the continuity of digital marketing services and client communications in the event of an unforeseen and prolonged internet outage. Such an outage could be caused by a variety of factors, including cyberattacks, technical failures or service provider issues. The plan aims to minimize disruption to these critical services, ensuring that client projects are delivered on time and communication lines remain open and effective.

Operations at risk:

Operation: Digital Marketing Services Operation Description: A team dedicated to creating and managing digital marketing campaigns for clients across various time zones. Business Impact: High Impact Description: The team manages all client communications, campaign designs, and real-time online marketing strategies. An internet outage would halt all ongoing campaigns and client communications, leading to potential loss of business and client trust.

Recovery strategy:

The BCP should include immediate measures like switching to a backup internet service provider or using mobile data as a temporary solution. The IT team should be prepared to deploy these alternatives swiftly. Additionally, the company should have a protocol for informing clients about the situation via alternative communication channels like mobile phones.

Roles and responsibilities:

Representative: Alex Martinez Role: IT Manager Description of Responsibilities:

  • Oversee the implementation of the backup internet connectivity plan.
  • Coordinate with the digital marketing team to ensure minimal disruption in campaign management.
  • Communicate with the service provider for updates and resolution timelines.

Business Continuity and Disaster Recovery Plan Template

Business continuity plan example for software company

In the landscape of software development, a well-structured Business Continuity Plan (BCP) is vital. This example illustrates a BCP for a software company, focusing on a different kind of disruption: a critical data breach.

Business Continuity Plan Template

Scope and objectives:

This BCP is designed to ensure the continuity of software development and client data security in the event of a significant data breach. Such a breach could be due to cyberattacks, internal security lapses, or third-party service vulnerabilities. The plan prioritizes the rapid response to secure data, assess the impact on software development projects and maintain client trust and communication.

Operation: Software Development and Data Security Operation Description: The software development team is responsible for creating and maintaining software products, which involves handling sensitive client data. In the realm of software development, where the creation and maintenance of products involve handling sensitive client data, prioritizing security is crucial. Strengthen your software development team’s capabilities by incorporating the best antivirus with VPN features, offering a robust defense to protect client information and maintain a secure operational environment. The integrity and security of this data are paramount.

Business Impact: Critical Impact Description: A data breach could compromise client data, leading to loss of trust, legal consequences and potential financial penalties. It could also disrupt ongoing development projects and delay product releases.

The IT security team should immediately isolate the breached systems to prevent further data loss. They should then work on identifying the breach’s source and extent. Simultaneously, the client relations team should inform affected clients about the breach and the steps being taken. The company should also engage a third-party cybersecurity firm for an independent investigation and recovery assistance.

Representative: Sarah Lopez Role: Head of IT Security Contact Details: [email protected] Description of Responsibilities:

  • Lead the initial response to the data breach, including system isolation and assessment.
  • Coordinate with external cybersecurity experts for breach analysis and mitigation.
  • Work with the legal team to understand and comply with data breach notification laws.
  • Communicate with the software development team leaders about the impact on ongoing projects.

Business Continuity Plan Templates

Related: 7 Best Business Plan Software for 2023

Business continuity plan example for manufacturing

In the manufacturing sector, disruptions can significantly impact production lines, supply chains, and customer commitments. This example of a Business Continuity Plan (BCP) for a manufacturing company addresses a specific scenario: a major supply chain disruption.

Business Continuity Plan Template

This BCP is formulated to ensure the continuity of manufacturing operations in the event of a significant supply chain disruption. Such disruptions could be caused by geopolitical events, natural disasters affecting key suppliers or transportation network failures. The plan focuses on maintaining production capabilities and fulfilling customer orders by managing and mitigating supply chain risks.

Operation: Production Line Operation Description: The production line is dependent on a steady supply of raw materials and components from various suppliers to manufacture products. Business Impact: High Impact Description: A disruption in the supply chain can lead to a halt in production, resulting in delayed order fulfillment, loss of revenue and potential damage to customer relationships.

The company should establish relationships with alternative suppliers to ensure a diversified supply chain. In the event of a disruption, the procurement team should be able to quickly switch to these alternative sources. Additionally, maintaining a strategic reserve of critical materials can buffer short-term disruptions. The logistics team should also develop flexible transportation plans to adapt to changing scenarios.

Representative: Michael Johnson Role: Head of Supply Chain Management Contact Details: [email protected] Description of Responsibilities:

  • Monitor global supply chain trends and identify potential risks.
  • Develop and maintain relationships with alternative suppliers.
  • Coordinate with logistics to ensure flexible transportation solutions.
  • Communicate with production managers about supply chain status and potential impacts on production schedules.

Related: 15+ Business Plan Templates for Strategic Planning

BCPs are essential for ensuring that a business can continue operating during crises. Here’s a summary of the different types of business continuity plans that are common:

  • Operational : Involves ensuring that critical systems and processes continue functioning without disruption. It’s vital to have a plan to minimize revenue loss in case of disruptions.
  • Technological : For businesses heavily reliant on technology, this type of continuity plan focuses on maintaining and securing internal systems, like having offline storage for important documents.
  • Economic continuity : This type ensures that the business remains profitable during disruptions. It involves future-proofing the organization against scenarios that could negatively impact the bottom line.
  • Workforce continuity : Focuses on maintaining adequate and appropriate staffing levels, especially during crises, ensuring that the workforce is capable of handling incoming work.
  • Safety : Beyond staffing, safety continuity involves creating a comfortable and secure work environment where employees feel supported, especially during crises.
  • Environmental : It addresses the ability of the team to operate effectively and safely in their physical work environment, considering threats to physical office spaces and planning accordingly.
  • Security : Means prioritizing the safety and security of employees and business assets, planning for potential security breaches and safeguarding important business information.
  • Reputation : Focuses on maintaining customer satisfaction and a good reputation, monitoring conversations about the brand and having action plans for reputation management.

Business Continuity Planning Templates

As I have explained so far, a Business Continuity Plan (BCP) is invaluable. Writing an effective BCP involves a series of strategic steps, each crucial to ensuring that your business can withstand and recover from unexpected events. Here’s a guide on how to craft a robust business continuity plan:

Business Continuity And Disaster Recovery Plan Template

1. Choose your business continuity team

Assemble a dedicated team responsible for the development and implementation of the BCP. The team should include members from various departments with a deep understanding of the business operations.

2. Outline your plan objectives

Clearly articulate what the plan aims to achieve. Objectives may include minimizing financial loss, ensuring the safety of employees, maintaining critical business operations, and protecting the company’s reputation.

3. Meet with key players in your departments

Engage with department heads and key personnel to gain insights into the specific needs and processes of each department. This helps in identifying critical functions and resources.

4. Identify critical functions and types of threats

Determine which functions are vital to the business’s survival and identify potential threats that could impact these areas. 

5. Carry on risk assessments across different areas

Evaluate the likelihood and impact of identified threats on each critical function. This assessment helps in prioritizing the risks and planning accordingly.

6. Conduct a business impact analysis (BIA)

Perform a BIA to understand the potential consequences of disruption to critical business functions. It has to be done in determining the maximum acceptable downtime and the resources needed for business continuity.

7. Start drafting the plan

Compile the information gathered into a structured document. The plan should include emergency contact information, recovery strategies and detailed action steps for different scenarios.

8. Test the plan for any gaps

Conduct simulations or tabletop exercises to test the plan’s effectiveness. This testing can reveal unforeseen gaps or weaknesses in the plan.

9. Review & revise your plan

Use the insights gained from testing to refine and update the plan. Continual revision ensures the plan remains relevant and effective in the face of changing business conditions and emerging threats.

Read Also: How to Write a Business Plan Outline [Examples + Templates]

A Business Continuity Plan (BCP) should ideally be reviewed and updated at least annually. 

The annual review ensures that the plan remains relevant and effective in the face of new challenges and changes within the business, such as shifts in business strategy, introduction of new technology or changes in operational processes. 

Additionally, it’s crucial to reassess the BCP following any significant business changes, such as mergers, acquisitions or entry into new markets, as well as after the occurrence of any major incident that tested the plan’s effectiveness. 

However, in rapidly changing industries or in businesses that face a high degree of uncertainty or frequent changes, more frequent reviews – such as bi-annually or quarterly – may be necessary. 

A Business Continuity Plan (BCP) and a Disaster Recovery Plan (DRP) are two crucial components of organizational preparedness, yet they serve different functions. The BCP is aimed at preventing interruptions to business operations and maintaining regular activities. 

It focuses on aspects such as the location of operations during a crisis (like a temporary office or remote work), how staff will communicate and which functions are prioritized. In essence, a BCP details how a business can continue operating during and after a disruption​​​​.

On the other hand, a DRP is more specific to restoring data access and IT infrastructure after a disaster. It describes the steps that employees must follow during and after a disaster to ensure minimal function necessary for the organization to continue. 

Essentially, while a BCP is about maintaining operations, a DRP is about restoring critical functions, particularly IT-related, after a disruption has occurred​

It’s clear that having a robust and adaptable business continuity plan (BCP) is not just a strategic advantage but a fundamental necessity for businesses of all sizes and sectors. 

From small businesses to large corporations, the principles of effective business continuity planning remain consistent: identify potential threats, assess the impact on critical functions, and develop a comprehensive strategy to maintain operations during and after a disruption.

The process of writing a BCP, as detailed in this article, underscores the importance of a thorough and thoughtful approach. It’s about more than just drafting a document; it’s about creating a living framework that evolves with your business and the changing landscape of risks.

To assist in this crucial task, you can use Venngage’s business plan maker & their business continuity plan templates . These tools streamline the process of creating a BCP, ensuring that it is not only comprehensive but also clear, accessible and easy to implement. 

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  • Business Continuity Plan Basics
  • Understanding BCPs
  • Benefits of BCPs
  • How to Create a BCP
  • BCP & Impact Analysis
  • BCP vs. Disaster Recovery Plan

Frequently Asked Questions

  • Business Continuity Plan FAQs

The Bottom Line

What is a business continuity plan (bcp), and how does it work.

business continuity plan for distribution center

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What Is a Business Continuity Plan (BCP)? 

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.

Key Takeaways

  • Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks.
  • BCP is designed to protect personnel and assets and make sure they can function quickly when disaster strikes.
  • BCPs should be tested to ensure there are no weaknesses, which can be identified and corrected.

Understanding Business Continuity Plans (BCPs)

BCP involves defining any and all risks that can affect the company's operations, making it an important part of the organization's risk management strategy. Risks may include natural disasters—fire, flood, or weather-related events—and cyber-attacks . Once the risks are identified, the plan should also include:

  • Determining how those risks will affect operations
  • Implementing safeguards and procedures to mitigate the risks
  • Testing procedures to ensure they work
  • Reviewing the process to make sure that it is up to date

BCPs are an important part of any business. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. It is generally conceived in advance and involves input from key stakeholders and personnel.

Business impact analysis, recovery, organization, and training are all steps corporations need to follow when creating a Business Continuity Plan.

Benefits of a Business Continuity Plan

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic. Business continuity planning is typically meant to help a company continue operating in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on the recovery of a company's information technology system after a crisis.

Consider a finance company based in a major city. It may put a BCP in place by taking steps including backing up its computer and client files offsite. If something were to happen to the company's corporate office, its satellite offices would still have access to important information.

An important point to note is that BCP may not be as effective if a large portion of the population is affected, as in the case of a disease outbreak. Nonetheless, BCPs can improve risk management—preventing disruptions from spreading. They can also help mitigate downtime of networks or technology, saving the company money.

How To Create a Business Continuity Plan

There are several steps many companies must follow to develop a solid BCP. They include:

  • Business Impact Analysis : Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
  • Recovery : In this portion, the business must identify and implement steps to recover critical business functions.
  • Organization : A continuity team must be created. This team will devise a plan to manage the disruption.
  • Training : The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Companies may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required information are housed or stored, and other important personnel.

Along with testing the continuity team, the company should also test the BCP itself. It should be tested several times to ensure it can be applied to many different risk scenarios . This will help identify any weaknesses in the plan which can then be corrected.

In order for a business continuity plan to be successful, all employees—even those who aren't on the continuity team—must be aware of the plan.

Business Continuity Impact Analysis

An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis. The worksheet should be completed by business function and process managers who are well acquainted with the business. These worksheets will summarize the following:

  • The impacts—both financial and operational—that stem from the loss of individual business functions and process
  • Identifying when the loss of a function or process would result in the identified business impacts

Completing the analysis can help companies identify and prioritize the processes that have the most impact on the business's financial and operational functions. The point at which they must be recovered is generally known as the “recovery time objective.”

Business Continuity Plan vs. Disaster Recovery Plan

BCPs and disaster recovery plans are similar in nature, the latter focuses on technology and information technology (IT) infrastructure. BCPs are more encompassing—focusing on the entire organization, such as customer service and supply chain. 

BCPs focus on reducing overall costs or losses, while disaster recovery plans look only at technology downtimes and related costs. Disaster recovery plans tend to involve only IT personnel—which create and manage the policy. However, BCPs tend to have more personnel trained on the potential processes. 

Why Is Business Continuity Plan (BCP) Important?

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic and business continuity plans (BCPs) are an important part of any business. BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition.

What Should a Business Continuity Plan (BCP) Include?

Business continuity plans involve identifying any and all risks that can affect the company's operations. The plan should also determine how those risks will affect operations and implement safeguards and procedures to mitigate the risks. There should also be testing procedures to ensure these safeguards and procedures work. Finally, there should be a review process to make sure that the plan is up to date.

What Is Business Continuity Impact Analysis?

An important part of developing a BCP is a business continuity impact analysis which identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis.

These worksheets summarize the impacts—both financial and operational—that stem from the loss of individual business functions and processes. They also identify when the loss of a function or process would result in the identified business impacts.

Business continuity plans (BCPs) are created to help speed up the recovery of an organization filling a threat or disaster. The plan puts in place mechanisms and functions to allow personnel and assets to minimize company downtime. BCPs cover all organizational risks should a disaster happen, such as flood or fire.  

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15 - 17.

Ready. “ IT Disaster Recovery Plan .”

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15-17.

business continuity plan for distribution center

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Business continuity management in Azure

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Azure maintains one of the most mature and respected business continuity management programs in the industry. The goal of business continuity in Azure is to build and advance recoverability and resiliency for all independently recoverable services, whether a service is customer-facing (part of an Azure offering) or an internal supporting platform service.

In understanding business continuity, it's important to note that many offerings are made up of multiple services. At Azure, each service is statically identified through tooling and is the unit of measure used for privacy, security, inventory, risk business continuity management, and other functions. To properly measure capabilities of a service, the three elements of people, process, and technology are included for each service, whatever the service type.

An image describing how elements such as people (those who work on the service and are required to support it), process (any process to do tasks that support the service), and technology (the technology used to deliver the service or the technology provided as the service itself) combine to create a service that benefits a cloud user.

For example:

  • If there's a business process based on people, such as a help desk or team, the service delivery is what they do. The people use processes and technology to perform the service.
  • If there's technology as a service, such as Azure Virtual Machines, the service delivery is the technology along with the people and processes that support its operation.

Shared responsibility model

Many of the offerings Azure provides require you to set up disaster recovery in multiple regions and aren't the responsibility of Microsoft. Not all Azure services automatically replicate data or automatically fall back from a failed region to cross-replicate to another enabled region. In these cases, you are responsible for configuring recovery and replication.

Microsoft does ensure that the baseline infrastructure and platform services are available. But in some scenarios, usage demands that you duplicate your deployments and storage in a multi-region capacity, if you choose to. These examples illustrate the shared responsibility model. It's a fundamental pillar in your business continuity and disaster recovery strategy.

Division of responsibility

In any on-premises datacenter, you own the whole stack. As you move assets to the cloud, some responsibilities transfer to Microsoft. The following diagram illustrates areas and division of responsibility between you and Microsoft according to the type of deployment.

A visual showing what responsibilities belong to the cloud customer versus the cloud provider.

A good example of the shared responsibility model is the deployment of virtual machines. If you want to set up cross-region replication for resiliency if there's region failure, you must deploy a duplicate set of virtual machines in an alternate enabled region. Azure doesn't automatically replicate these services over if there's a failure. It's your responsibility to deploy necessary assets. You must have a process to manually change primary regions, or you must use a traffic manager to detect and automatically fail over.

Customer-enabled disaster recovery services all have public-facing documentation to guide you. For an example of public-facing documentation for customer-enabled disaster recovery, see Azure Data Lake Analytics .

For more information on the shared responsibility model, see Microsoft Trust Center .

Business continuity compliance: Service-level responsibility

Each service is required to complete Business Continuity Disaster Recovery records in the Azure Business Continuity Manager Tool. Service owners can use the tool to work within a federated model to complete and incorporate requirements that include:

Service properties : Defines the service and how disaster recovery and resiliency are achieved and identifies the responsible party for disaster recovery (for technology). For details on recovery ownership, see the discussion on the shared responsibility model in the preceding section and diagram.

Business impact analysis : This analysis helps the service owner define the recovery time objective (RTO) and recovery point objective (RPO) based on the criticality of the service across a table of impacts. Operational, legal, regulatory, brand image, and financial impacts are used as target goals for recovery.

Microsoft doesn't publish RTO or RPOs for services because this data is for internal measures only. All customer promises and measures are SLA-based because it covers a wider range versus RTO or RPO, which is only applicable in catastrophic loss.

Dependencies : Each service maps the dependencies (other services) it requires to operate no matter how critical, and is mapped to runtime, needed for recovery only, or both. If there are storage dependencies, another data is mapped that defines what's stored, and if it requires point-in-time snapshots, for example.

Workforce : As noted in the definition of a service, it's important to know the location and quantity of workforce able to support the service, ensuring no single points of failure, and if critical employees are dispersed to avoid failures by cohabitation in a single location.

External suppliers : Microsoft keeps a comprehensive list of external suppliers, and the suppliers deemed critical are measured for capabilities. If identified by a service as a dependency, supplier capabilities are compared to the needs of the service to ensure a third-party outage doesn't disrupt Azure services.

Recovery rating : This rating is unique to the Azure Business Continuity Management program. This rating measures several key elements to create a resiliency score:

  • Willingness to fail over: Although there can be a process, it might not be the first choice for short-term outages.
  • Automation of failover.
  • Automation of the decision to fail over.

The most reliable and shortest time to failover is a service that's automated and requires no human decision. An automated service uses heartbeat monitoring or synthetic transactions to determine a service is down and to start immediate remediation.

Recovery plan and test : Azure requires every service to have a detailed recovery plan and to test that plan as if the service has failed because of catastrophic outage. The recovery plans are required to be written so that someone with similar skills and access can complete the tasks. A written plan avoids relying on subject matter experts being available.

Testing is done in several ways, including self-test in a production or near-production environment, and as part of Azure full-region down drills in canary region sets. These enabled regions are identical to production regions but can be disabled without affecting your services. Testing is considered integrated because all services are affected simultaneously.

Customer enablement : When you are responsible for setting up disaster recovery, Azure is required to have public-facing documentation guidance. For all such services, links are provided to documentation and details about the process.

Verify your business continuity compliance

When a service has completed its business continuity management record, you must submit it for approval. It's assigned to a business continuity management experienced practitioner who reviews the entire record for completeness and quality. If the record meets all requirements, it's approved. If it doesn't, it's rejected with a request for reworking. This process ensures that both parties agree that business continuity compliance has been met and that the work is only attested to by the service owner. Azure internal audit and compliance teams also do periodic random sampling to ensure the best data is being submitted.

Testing of services

Microsoft and Azure do extensive testing for both disaster recovery and for availability zone readiness. Services are self-tested in a production or pre-production environment to demonstrate independent recoverability for services that aren't dependent on major platform failovers.

To ensure services can similarly recover in a true region-down scenario, "pull-the-plug"-type testing is done in canary environments that are fully deployed regions matching production. For example, the clusters, racks, and power units are literally turned off to simulate a total region failure.

During these tests, Azure uses the same production process for detection, notification, response, and recovery. No individuals are expecting a drill, and engineers relied on for recovery are the normal on-call rotation resources. This timing avoids depending on subject matter experts who might not be available during an actual event.

Included in these tests are services where you are responsible for setting up disaster recovery following Microsoft public-facing documentation. Service teams create customer-like instances to show that customer-enabled disaster recovery works as expected and that the instructions provided are accurate.

For more information on certifications, see the Microsoft Trust Center and the section on compliance.

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  • Reliability guidance overview for Microsoft Azure products and services

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Blog - Operations

Business continuity in the contact center.

business continuity plan for distribution center

A sudden ice storm can shut down your contact center for a day, or a catastrophic cyclone can stop operations for months. To ensure that your business is not negatively impacted by a disaster, natural or otherwise, it’s important to have business continuity plans in place, especially for your contact center.

What is Business Continuity?

Business continuity ensures that critical business systems are always operational. These systems will vary from business to business but often include IT, supply chain (storage, distribution and logistics), and customer care.

Potential issues to plan for are more than those related to natural disasters. Something as minor as a power outage can affect operations for hours. By planning for major and minor situation, you minimize risk and protect your company.

Options for the Contact Center

One option to consider is the use of hosted call center technology. Through a hosted solution, your agents can access the same platform they use daily from any location; the only requirements are a computer and a phone line. This location can be a secondary business facility, an agent’s home, or anywhere in the U.S.

The primary benefit of a hosted solution is that your own agents are utilized. They know the ins and outs of your business, as it’s what they do everyday. There is no need to train additional external agents for a possible need, so service quality is not a concern. Additionally, a hosted solution allows your business to introduce a work-from-home program.

Another option is deployment of a small virtual call center , which then becomes your safety  net. Because these virtual agents are part of your daily operations, they are an extension of your contact center and are thus intimate with your operations and culture.

The main benefit of using virtual agents is that they are dispersed geographically. In large-scale natural disasters, the areas surrounding your company may be heavily affected, not allowing your agents to work from another local building or from their own homes. As these virtual agents could be located anywhere in the U.S., the likelihood that the entire virtual team would be affected is minimized, ensuring continuity in your operations.

Many factors will impact your business continuity plan. For some companies, not having an operational contact center for a couple of days may be acceptable. For others, however. an hour of downtime may be unacceptable. Regardless of your requirements, there are solutions to ensure that your company is up and running in any situation.

business continuity plan for distribution center

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business continuity plan for distribution center

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  1. Building a Business Continuity Plan (BCP)

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  2. What is business continuity plan (BCP)?

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  4. Business Continuity Planning: How To Create and Maintain BCPs (2022)

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  6. 7 Stages of a Business Continuity Plan

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VIDEO

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COMMENTS

  1. Business Continuity for Manufacturers and Distributors

    Business continuity planning enables companies to identify potential risks and vulnerabilities and map out a plan to mitigate them. Having a plan that recognizes the different types of risks is essential to help your company take immediate action and minimize downtime. What is a business continuity plan?

  2. Guide To Creating A Warehouse Business Continuity Plan

    Assess your needs and vulnerabilities. Draft a plan based on your findings. Test and revise your plan as needed. Implement and update your plan regularly. Train employees on how to follow the plan. In this blog post, we will provide a step-by-step guide on how to create a business continuity plan for your warehouse.

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  4. Business Continuity and Disaster Planning for Distributors

    When it comes time to develop your distribution company's Business Continuity Plan, consider the following: What are the essential functions of the business? These should be priorities to keep going when disaster hits. What are some possible ways your business could be impacted?

  5. Business Continuity Plan Template for Logistics Companies

    A Business Continuity Plan (BCP) for Logistics Companies is a strategy that outlines how the organization will continue to provide transportation, warehousing and distribution services during emergencies or disruptions to the supply chain. It includes the processes, procedures, and tools that logistics companies can use to identify potential ...

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    Share When it comes to distributing your business continuity plans and crisis communication, there a few things you should contemplate: Go mobile. Remember that 4.4 billion people will be using mobile apps by 2018. Think about how your employees are communicating.

  7. Business Continuity: Ready, Set, Prepare

    Business Continuity: Ready, Set, Prepare No Tags Avalaible From labor slowdowns, port congestion, and power out­ages to wildfires, hurricanes, and terrorist attacks, we've seen no dearth of disasters that can shatter a company's supply chain and transportation networks. Here's how to plan for supply chain continuity—no matter what the obstacle.

  8. Business Continuity Plan: Example & How to Write

    A business continuity plan is a practical guide developed by companies to enable continuous operations in the event of major business disruptions like natural disasters and global lockdowns. Business continuity planning usually involves analyzing the impact of disrupted business processes and determining recovery strategies with management.

  9. What Is A Business Continuity Plan? [+ Template & Examples]

    1. Operational. Operational continuity means that the systems and processes your business relies on are able to continue functioning without disruption. As these processes are critical to business operations, it's important to have a plan in place in case disruption occurs so you can minimize the loss of revenue. 2.

  10. How a Digital-Led Business Continuity Plan Benefits Your ...

    Peachtree Corners, GA 30071. How a Digital-Led Business Continuity Plan Benefits Your Warehouse. Gina Daniel-Lee. Until March 2020, most business continuity plans focused on things like the chance of fire, natural disasters, and cyber attacks. Few foresaw a global health crisis on the scale of COVID-19 and the incredible levels of disruption it ...

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    Below are the 13 Things you must Consider in Business Continuity Plan for Warehouse During Crisis to help guarantee operational continuity within the shortest possible period. Planning Ahead...

  12. PDF Business Continuity Plan

    Business Continuity Plan Components and sequencing description This document is designed to help explain the contents of an example Business Continuity Plans, so that team members will have a better understanding of how to relate a Business Continuity Plan contents to the efforts needed to create them.

  13. How to create an effective business continuity plan

    A business continuity plan (BCP) is a strategic playbook created to help an organization maintain or quickly resume business functions in the face of disruption, whether that disruption is caused ...

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    Business Continuity Training Part 3: Planning Process Step 1 The first of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should "prepare" to create a business continuity plan. View on YouTube

  15. Disaster Recovery and Business Continuity Plan Saved $40 Million

    Disaster Recovery and Business Continuity Plan Saved $40 Million - ASUG ASUG News + Views Disaster Recovery and Business Continuity Plan Saved $40 Million Donald Hook May 2, 2020 6 minute read A food and beverage distribution company had aggressive plans to expand its business by 40% over four years.

  16. PDF Walmart takes collaborative approach to disaster recovery

    Each of those functions is required to have a business continuity plan, which includes us helping them to identify what risks are involved. We've been able to make business continuity part of the annual strategic planning process for the company, so that in addition to identifying other PwC Rebuilding for resilience | September 2013 1

  17. 7 Business Continuity Plan Examples

    6. Conduct a business impact analysis (BIA) Perform a BIA to understand the potential consequences of disruption to critical business functions. It has to be done in determining the maximum acceptable downtime and the resources needed for business continuity. 7. Start drafting the plan.

  18. What Is a Business Continuity Plan (BCP), and How Does It Work?

    A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to...

  19. PDF How P&G's supply chain excellence positioned it to prosper in ...

    role in P&G's business continuity plans. What would happen if no one in the planning service center, for example, could physically be present in the office? Years before the business continuity planning started, there was a simple answer: operations would cease. But new digital tools and standardized work procedures

  20. PDF Creating a Business Continuity Plan

    CREATING THE BUSINESS CONTINUITY PLAN The business continuity plan (BCP) is intended to be a dynamic plan and can be used in emergencies, disasters, and other catastrophic events where the technology, facility, or a department is severely impacted. BCPs are critical in keeping the facility open and providing care to the community.

  21. Business continuity management program in Azure

    In this article. Azure maintains one of the most mature and respected business continuity management programs in the industry. The goal of business continuity in Azure is to build and advance recoverability and resiliency for all independently recoverable services, whether a service is customer-facing (part of an Azure offering) or an internal ...

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  23. Business Continuity in the Contact Center

    Business continuity ensures that critical business systems are always operational. These systems will vary from business to business but often include IT, supply chain (storage, distribution and logistics), and customer care. Potential issues to plan for are more than those related to natural disasters.

  24. How To Ensure Business Continuity In The Face Of Internet ...

    Artificial intelligence (AI) can be further leveraged for business continuity, with a 2022 Deloitte survey revealing that 76% of respondents plan to increase investments in AI to gain more ...