In manufacturing, resilience isn’t about luck, and certainly shouldn’t be. It’s about preparation. However, for too many businesses, their contingency plans seem to exist, only in theory; and quite often that’s too late.
“Everything works, until it doesn’t,” says David Lomas of Manufacturing Matters. “And when that moment comes, those businesses that haven’t prepared, can often end up paying the price for their procrastination.”
David spoke with Anthony Murphy, Managing Director of Veritas FM, who regularly works with manufacturers to assess their Business Continuity and Disaster Recovery (BCDR) plans.
Anthony tells us, what he finds is often worrying. “Some companies haven’t tested their contingency plans in many years. Others don’t have one at all. When something goes wrong, from a power cut to a flood, they often end up panicking, with team members not knowing what each other should be doing. Understanding who does what, is just one of many aspects of good resilience planning”
Murphy emphasises: “The consequences can be quite severe: Things like production loss, insurance claims, compliance breaches, and ultimately damage to brand reputation or worse still, safety or environmental issues. We’ve seen scenarios where the lack of a plan has led to environmental damage and even regulatory scrutiny,” Anthony added.
Anthony explained one instance where he had helped a Manufacturer create a recovery plan after they had suffered a severe power outage. Check out Case Study 7 here for a detailed understanding of the solution provided.
What are the other hidden consequences of failing to prepare?
Equally importantly, beyond the headlines are the human costs. “Staff get frustrated when they’re constantly reacting to problems. It creates a disjointed culture where no one feels confident or in control. Not to mention the cost of lost production, productivity, and customer confidence”
Anthony poses a number of crucial questions: “If an incident stopped your operation tomorrow, who does what? Do your people know the plan? Have you got a plan? Have you rehearsed it or when was it last updated?
After an unexpected crisis, how long would it take you to be fully operational again?”
David adds, “Manufacturers can’t afford to run on hope. Resilience is an investment and it can mean the difference between recovery and collapse.”
Having a clear, tested contingency plan isn’t just a box to tick, it’s a competitive advantage. And when your luck finally runs out, it’s the only thing that will keep your business standing.
Get professional assistance in formulating an effective Business Continuity Plan for your business.
Contact: anthony.murphy@veritas-fm.co.uk
-->