In the aftermath of the Japan Earthquake/Tsunami most global organizations updated their business continuity plans. However, several years later many plans have been gathering dust. With limited resources organizations can focus on updates to details for 3 key areas: damage assessment, communication and return to normal operations.

1. Supply Chain Business Continuity Plans
3 Most Common Areas to Improve
with Highest Payoff
Bill Kohnen June 2014 ASEAN Supply Chain Forum

2. Executive Summary
• Prior to the Japan earthquake/tsunami most global
organizations had general boilerplate business continuity
framework meet minimum audit requirements.
• Following Japan plans were updated and lessons learned added
• Now surveys suggest most organizations need to review plans
• Given limited resources 3 areas with big impact to focus on are
– Damage Assessment
– Communication
– Transition back to normal operations
Bill Kohnen June 2014 ASEAN Supply Chain Forum

3. 3 Areas to Consider
• Damage Assessment
• Communications
• Return to Normal Operations
Bill Kohnen June 2014 ASEAN Supply Chain Forum
* Of Course Safety and Security of People in the Aftermath of a disaster is most
important and takes priority however, that activity is best addressed as part of
Emergency Response Team (ERT) protocols.

4. Damage Assessment
• Need get Engineers to site fast to determine
extent of damage
• Reporting so recovery plan can begin
• Surprisingly affordable with 3rd party as
quarterly fee which includes baseline and
updated reviews of site so responders will all
ready know what “normal” is.
• Can pre negotiate rates applicable if event
happens
Bill Kohnen June 2014 ASEAN Supply Chain Forum

5. Damage Assessment
When Resource Action
Immediately After Event Contract with global or large
local engineering/
construction company with
resources near your site for
first response service.
Need to set up prior to
event. Consider global
companies like Fluor, M+W
etc.. And also local ones.
Include baseline site review
and min 2x per year
walkthroughs and updates
Reporting Set up mechanism for initial
reports to be prepared and
sent to stakeholders
Getting accurate reports to
stakeholders fast will be a
competitive advantage
Initial Recovery Have damage assessment
team independently review
initial plan
For site check and balance
In Process Recovery Damage assessment done
when recovery actually in
process
Next review would be at
scheduled walk through

6. Communication
• Physical communication post event
unpredictable
• Put in place automatic process for actions
required for as many items as you can
• Deploying a team to the region with corporate
authority but not actually at site can be
effective.
Bill Kohnen June 2014 ASEAN Supply Chain Forum

7. Communication
When Resource Action
Immediately After Event Site Team
Corporate Support
Contractors
Identify “trigger” events and
protocols to follow without need for
further communication or approval.
Compensate those required to act for
the responsibility.
Reporting Physical and Process Get some SAT phones but do not
count on them
Establish where regional recovery
team will be
Be prepared to have team members
as couriers to share info
Initial Recovery Physical and Process
Regional Corporate Teams most
important phase
Physical less an issue at this point
Focus is on understanding,
expectations, and timely further
resource
In Process Recovery Typical Solid Project Management
Reporting
At this point not rocket science but
assumes team is strong in project
management fundamentals.
May require training

8. Return to Normal Operations
• Goal should be to transition control and
resources for recovery back to site team as soon
as possible
• Probably better to transition back a bit to early
rather than to let the control last to long with the
recovery process
• Generally time to draw down for the site is once
the recovery plan is in process although until full
production returns there still may be a smaller
team in place managing customer fulfillment
issues
Bill Kohnen June 2014 ASEAN Supply Chain Forum

9. Return to Normal Operations
When Resource Action
Immediately After Event Site Team
Corporate Support
Contractors
Important that the site has cross
functional representation at various
levels from the beginning.
People who would be assigned as
corporate support must make at least
annual visits to the site and
understand its basic operations
Reporting Physical and Process Focus of all reporting is baseline vs.
current status.
Do not allow additional
improvements or nice to haves
Initial Recovery Regional Corporate Teams most
important and final phase
Insure mechanisms in place for
approvals for resources
Process for handoff to Site Team
established
In Process Recovery Site Team augmented by Project
Manager to stay until actual recovery
complete.
Identify potential project managers
utilizing resources from other regions
or corporate offices.
If a third party make sure they know
the site.

10. Summary
• While it is worth reviewing the entire BCP the areas
presented tend to provide the most actual benefit in
practice.
• Training of team members and building some level of team
cohesion will deliver dramatically better results. A natural
way to do this via simulation exercises
• Provide at least minimal additional compensation/reward
for those with added team responsibility.
• Rotate team membership occasionally
Bill Kohnen June 2014 ASEAN Supply Chain Forum