Catastrophes happen, often without warning. And when they do, everything you’ve ever built can come tumbling down. It’s hard enough to think about all the things that MUST get done just to operate the business daily, and minimize costs. And when it comes time to spend money on things just in case, it’s easier to just cross your fingers and pray.
Today’s tsunami in Japan is an excellent reminder to take a closer look at disaster planning for your business.
If you’re not already, here are some of the things you should be thinking about:
Inflation: How will higher prices affect your product costs, and your suppliers’ costs? Do you have sufficient backup suppliers, possibly with better buying power or larger existing inventories that will minimize their cost of raw materials and supplies?
Supplier insolvency: With so many businesses eking out profits, you must consider what you’d do if any of your single-source suppliers went out of business without warning. That happened to us last year and caused a deterioration of service due to the tidal wave of irate customers wanting to know when they would receive their products. For that one, we had anticipated the disruption and had contingency plans in place, which minimized the ill will.
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Today’s tsunami in Japan is an excellent reminder to take a closer look at disaster planning for your business.
If you’re not already, here are some of the things you should be thinking about:
Inflation: How will higher prices affect your product costs, and your suppliers’ costs? Do you have sufficient backup suppliers, possibly with better buying power or larger existing inventories that will minimize their cost of raw materials and supplies?
Supplier insolvency: With so many businesses eking out profits, you must consider what you’d do if any of your single-source suppliers went out of business without warning. That happened to us last year and caused a deterioration of service due to the tidal wave of irate customers wanting to know when they would receive their products. For that one, we had anticipated the disruption and had contingency plans in place, which minimized the ill will.
Read More
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