Disaster Preparedness & Your Supply Chain

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1 Disaster Preparedness & Your Supply Chain Mark Norton Agility Recovery To download a copy of the slides, please visit:

2 Agenda 1. What is Your Supply Chain? 2. Effect of Supply Chain Disruption 3. Where to start 4. Working with Your Suppliers 5. How Agility Recovery can supplement your Strategy

3 Prepare to Survive. Defining Your Supply Chain

4 Defining Supply Chain Supply Chain (Typical Definition) A network of suppliers, manufacturers, wholesalers, distributors, and retailers, who turn raw materials into finished goods and services and deliver them to consumers.

5 Defining Supply Chain Supply Chain (More Applicable Definition) ALL of the external vendors and suppliers you rely on to deliver your everyday services and products to clients. Examples: Power Company Water/Sewer Authority Internet Service Provider Telephone (Landline and Wireless) Company Data Back Up Provider (e mail, etc.) Trusted Advisors CPA Insurance Agent Financial Advisor Attorney

6 Prepare to Survive. Effect of Supply Chain Disruption

7 Key Concerns Disruptions are on the rise in many industries, partly because of the growing global economy and a reliance on overseas suppliers of components Small businesses are particularly vulnerable Typically focused on fewer suppliers Carry less clout with supply chain partners Disruptions can have long term effects on a company s: Stock price Profitability Reputation Growth Potential Source:

8 Potential Threats Potential Threats To External Suppliers Natural Disasters Accidents Financial Failure Technological Failure Geopolitical Events Energy Shortage Strikes or Layoffs Change in Regulations Terrorism Employee Sabotage

9 Prepare to Survive. Where to Start

10 Where to Start Supply Chain Risk Prevention It is often difficult and expensive to entirely eliminate all risks. Instead, focus on developing a strategy to quickly remediate the impact of a major suppliers interruption. Involve your key suppliers in strategy development, drills, and exercises.

11 Where to Start Four Key Elements of Supply Chain Risk Management 1. Awareness of risk 2. Prevention of risk 3. Remediation of threat 4. Knowledge Management between entities

12 Key Steps Assessing Suppliers Vulnerabilities & Mitigating Risk Conduct assessments of suppliers business continuity plans (or request self assessments) Conduct onsite audits of strategic suppliers (or virtual) Work with suppliers to make improvements if weaknesses are discovered Engage in simulations of business disruptions to test suppliers ability to activate emergency response plans and crisis management (table top drills, exercises) Ensure access to critical resources & assets for recovery Continually measure against key indicators through onsite visits and/or virtual meetings

13 Prepare to Survive. Working with Your Suppliers

14 1. Awareness Expose the potential risks associated with a supply chain disruption Survey your suppliers to gauge potential risk Educate internal audience of identified exposure

15 1. Awareness Supplier Survey Sample Questions Does your organization have documented recover plan? (Ask to see it) Has a formal risk assessment and business impact analysis been completed? Are you comfortable with your preparedness to handle an interruption? Does your recovery plan include options for alternative facilities? When was the last time you tested your recovery plan?

16 2. Prevention Fully identify potential risks associated with your main suppliers Recognize causes/sources of potential risks Estimate the probability occurrence Treat the causes Monitor results

17 2. Prevention Sample Supplier Assessment Vendor What service/product does vendor support? Where is vendor located? Distance from your organization? Service Provider How often is the service used? Only supplier of the service? Product Provider Average inventory? How often is inventory restocked? Average delivery time? Sole source of product(s)?

18 3. Remediation Develop a strategy to recover from identified threats Consider ways to shorten the duration, therefore minimizing the impact Allocate any resources necessary to implement the strategy Enact the developed strategy when a supply chain disruption occurs

19 4. Knowledge Management Monitor any external (or internal) changes to potential risks and/or causes Perform a post event audit on supply chain disruptions when they occur Ensure identified plans and contingencies are sufficient to react to the next disruption

20 Prepare to Survive. In Summary

21 In Summary Business continuity planning should not be an independent activity Risk is a fact of life Ignorance does not eliminate risk You can manage and live with risk Planning is key to survival

22 Prepare to Survive. Additional Resources & Tools

23 Resources & Tools Detailed Vendor Assessment Checklist/Form LINK:

24 Resources & Tools Preparedness Evaluation Quiz: Short 10 Question online assessment for yourself or vendor/supplier network LINK:

25 Resources & Tools Risk Assessment Form: Downloadable tool great for use when developing your Mitigation Plans LINK:

26 Resources & Tools Detailed Preparedness and Recovery Checklists: Tornado Prep Flood Prep Disaster Kit Checklist Crisis Communications Phone Recovery Checklist

27 Prepare to Survive. The Role of Agility Recovery in your Preparedness Plan

28 Agility Recovery History Started by General Electric 25 years ago. Saw a need to recover at or near the businesses normal location. Photo taken by Agility Recovery team

29 What We Do We provide the 4 key Elements of Disaster Recovery 1. Office Space: Everything needed for your employees to work 2. Power for the office 3. Communications: Telephone and Internet access & equipment 4. Computer System: Computers, servers, printers, fax

30 Culture of Success General Electric built an infrastructure to ensure success 25 years Rescued 1000 s of businesses Never failed Atlanta Distribution Center

31 New Vision The industry focused on the needs of the Fortune 500. This model is too expensive for most businesses. In 2004, Agility defined a new vision. Agility will bring disaster recovery solutions to ALL businesses.

32 New Business Model ReadySuite Agility created a solution that all business could afford. For a small monthly fee, normally $495/month, you can protect your business.

33 When You Become a Member A continuity planner will contact you and gather the info we need to recover your business if you have a disaster. e.g. Erin Mitchell Agility Rep How many critical employees need to be up and running? What are the power requirements of the office? Where do you store your data? How do you want your phone calls handled during a disaster? Ben Pritchard Member Services

34 When You Become a Member All information is placed in a password protected site called myagility. myagility is the foundation of your recovery plan.

35 When You Have A Disaster Agility s operations team works with you to determine your needs. You only pay for Agility s out of pocket expenses: If we fly a technician to your office to set up computers, we charge you for the airfare, but not the time. If you need a generator, we'll deliver it and bill you our exact costs. If you need a server, we take one from our stock and ship it to you. You pay for the shipping. Agility Quickship Cases

36 When You Have A Disaster Regardless if you have Agility or not, you would still have the same recovery needs. But Agility will get it done faster, cheaper and more effectively. Most importantly, we get it done every time. ReadySuite Mobile Office

37 Disasters Happen Sometimes they re small like a phone outage.

38 Disasters Happen Sometimes they re big like a tornado. Photo taken by Agility Recovery team

39 Disasters Happen If you don t have a plan your business will be forever altered. Photo taken by Agility Recovery team

40 Disasters Happen During a disaster there are more important things to focus on instead of trying to rebuild your infrastructure. When you re most vulnerable to being overcharged and underserved, you will have a partner you can trust: 25 years 1000 s of recoveries Never failed Agility will never profit from your disaster. Bobbi Carruth Agility Member Worthington Federal Bank

41 Ask Yourself Do you believe a disaster could happen? Do you believe that without a plan, your business will suffer? Do you believe Agility, after 25 years and 1000 s of recoveries will be there? DCH Credit Union Agility Members Tornado Recovery

42 Ask Yourself Do You Believe? If you answered, Yes, then Agility is a fairly easy decision. We welcome you as a member.

43 Questions? Mark Norton Agility Recovery This presentation has been recorded and a link will be sent out tomorrow to all registrants. To download the slides, please visit:

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