Is your Supply Chain Resilient against Natural Disasters?

The number of natural disasters has increased five times over the past fifty years, as reported by the World Meteorological Organization (WMO).

As a result of climate change, cyclones and other natural disasters (including heavy rainfalls, flash floods, lightning and thunderstorms) are of greater frequency and severity. Our region being highly exposed to the risk of cyclones, organisations should be prepared for the upcoming cyclonic season which officially starts on 15 November 2021 and will end on 30 April 2022. 

While most organisations have a Business Continuity Plan (BCP) in place to mitigate the risks of natural disasters, the measures might mainly focus on internal operations. However, the impact of natural disasters on the supply chain can affect the smooth running of businesses. Today supply chain involves a complex network of suppliers, logistics service providers, financial institutions, partners and customers. We have witnessed the impact of Covid-19 on the supply chain such as closure of borders as well as shortages of parts and raw materials, resulting in delays and additional costs in deliveries. Organisations should draw lessons from the pandemic to be better prepared against the risk of natural disasters which can have similar disruptions on the supply chain.

To build Organisational Resilience, organisations need to be proactive and adopt the following measures to mitigate supply chain risks:

1. Review BCP: organisations should ensure that the relevant response plans are documented in their BCP to manage and recover from natural disasters. With the forthcoming cyclonic season, organisations are encouraged to revisit their plan to ensure appropriate mitigation measures are in place in the event of a cyclone. 
2. Be Green, Act responsibly: consider the decoupling and relocating your business to be closer to your suppliers and customers. Promote sustainable initiatives and adopt innovative solutions to bring value to your stakeholders while reducing your carbon footprint on the environment. 
3. Build long-term partnership: build trusted and long-term collaboration with your suppliers and ensure that they are also resilient throughout their own supply chain. 
4. Communication: clear, relevant and specific communications using appropriate communication channels for strong and trusted relationship with all stakeholders.

With more than 13 years of experience in Disaster Recovery and Business Continuity Management, BIRGER. is your complete Business Continuity and Resiliency solutions partner. We help protecting your business and data with adapted solutions to your organisation.

For more information on the topic and our Resiliency Solutions & Services, please contact us by email resiliency@birger.technology.