Business Magazine

Strategic Keys to Supply Chain Crisis Management

Posted on the 24 April 2013 by Ryderexchange

Want to head problems off at the pass?
Have a smart crisis management strategy and plan in place.

If you’re moving freight through a global supply chain, then you know only too well the potential for something to go wrong. You also probably know that even the smallest failure at any point in the supply chain can result in cascading problems, in the same way that tapping a single domino can send the entire line of dominos toppling.

But what about problems of crisis proportions? Whether it’s an event that compromises a vehicle as it crosses the border from Mexico to El Paso, a large-scale security breach, or a natural disaster like a hurricane that disrupts your energy supply, grounds your fleet and endangers your employees, are you ready to respond? Can you keep your people, customers and assets safe?

The key to containing a crisis is a well-thought-out crisis management plan. The Oxford English Dictionary defines crisis management as the process by which a business or organization deals with a sudden emergency situation. In fact, it’s a business plan of action that can be implemented quickly if/when a crisis occurs. In the best of all worlds, you’ll never have to deal with one. However, it pays to be prepared.

Here are the top three things to consider to effectively manage crises:

1. An ounce of prevention: The best way to manage a crisis is to make sure it never happens. Do what it takes to prevent crisis events to the extent possible, taking proactive steps to keep your people, assets, company and the environment out of harm’s way.

DSC1071 300x258 Strategic Keys to Supply Chain Crisis Management
Precautionary measures include routinely performing preventive maintenance on the vehicles in your fleet, addressing small issues before they become dangerous problems. Prevention might mean training drivers to help them safely navigate the challenges of transporting cargo.

Prevention might also mean equipping those vehicles with GPS systems and real-time vehicle monitoring by dedicated security staff. Or, taking a first-hand look at what your supply chain partners are doing on the ground to anticipate, evaluate and mitigate security threats. Likewise, if you’re transporting hazardous materials, prevention could mean implementing spill prevention control and countermeasure plans. In all cases, a little prevention goes a long way.

2. Tiered approach: If a crisis occurs, take a tiered approach to managing it. At a fundamental level, this means formulating what-if scenarios and developing a plan across five tiers: anticipation, preparation, rapid response, follow through and post-event analysis.

On a practical level, it means proactively testing your readiness and having a plan in place that engages executive, financial and technical resources to respond to an event. It also means ensuring that crisis managers are notified in time to lead intervention efforts and ensuring that you have documented business continuity and disaster recovery plans in place.

3. Emergency response plan: Whether it’s a set of procedures outlining what to do in the case of severe weather, fire, evacuation or a chemical spill, be ready to respond if/when disaster strikes. Anticipate the steps you’ll take in a crisis and plan for and practice them. Engage with the public sector and your customers to ensure proper awareness, communication and planning.

Are you prepared for the unexpected? Have you implemented preventive measures across your company to keep crises from occurring – along with a crisis management plan to respond quickly if/when they do? What about an emergency response plan? Consider partnering with an expert to help you cover your bases before the unthinkable happens.

To learn more about the importance of prevention, safety, security and emergency response, read our Corporate Sustainability Report.   

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