Business continuity planning for a U.S. supply chain

Abstract

The research objective was to provide a directional sense of some key considerations for business continuity planning (BCP) specific to a company's downstream distribution operations in the U.S. This was achieved via a two-pronged strategy comprised of quantitative and qualitative elements to complement insights gained from the literature review. By quantitatively assessing the financial impacts arising from four hypothetical scenarios, the business impact analysis (BIA) showcased the merits of short time-to-recovery (TTR) in the event of a disruption. However, available information also appears to suggest that the estimated financial impact from carrying high-value inventory is not necessarily insignificant. Hence, a company may want to mitigate the likelihood of a scenario whereby large amounts of inventory become damaged. Qualitative information from industry participants in the study highlighted the importance of tailoring continuity plans to the unique supply chain needs of an organization.