The 2020 Mid-Year Economic Update_long

Tip: Create a Continuity Plan to Handle Disruptions

Ensure critical functions can continue during natural or business disasters.
mtow-blog-image

In addition to a contingency plan in case of a natural disaster, companies should create a business continuity plan to ensure that critical functions can continue during and after any kind of disruption, as discussed in Disaster Plans: 'No Single Point of Failure.'

Businesses that don’t implement a continuity plan risk reduced profits, as revenues fall and expenses increase to deal with the disruption. The recent labor dispute at the West Coast ports is an example of an unexpected disruption with a severe impact on business operations. Having a business continuity plan in place can greatly reduce the costs associated with such events.

Insurance doesn’t cover all costs, as the Federal Emergency Management Agency points out, and cannot replace customers that defect to the competition in order to receive time-sensitive products and services.

According to FEMA, the first step in creating a continuity plan is conducting a business impact analysis to identify time-sensitive or critical business functions and the processes that support them. Something as simple as setting up automatic forwarding to cell phones can help retain customers in the event of a disruption.

Read more about preparing for unplanned events in Disaster Plans: 'No Single Point of Failure.'

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.