The Disaster Recovery Handbook: A Step-by-Step Plan to Ensure Business Continuity and Protect Vital Operations, Facilities, and Assets

Advice is the only commodity on the market
where the supply always exceeds the demand.

—Author Unknown

Every business has suppliers. If you have not been farsighted in dealing with the impact that a disaster may have on your ability to work with them, it may result in financial and operational hardships for your company. Some disasters have the ability to not only shut down your business for a time but could also affect your suppliers’ ability to provide the necessary goods for your business. If this happens, your business suffers. For example, if a tornado hits a section of the community where your supplier for raw materials is located, that supplier might not be able to produce the goods you need for your operation. Their building may be damaged, and their employees cannot get to work. Even if they still could operate, their distribution channel may have been affected. They may not be able to get trucks to their building so they can ship their products to you. Either way your business will be in trouble; your supplier cannot deliver the goods required for your business, which results in your not being able to satisfy and ship your customer orders. In turn, your customers won’t pay for unshipped orders, and you suffer serious financial problems.

All companies, large and small, need to address how they will be affected by a disaster experienced by one of their suppliers. Businesses are linked together in the supply chain, each needing the other to complete the business cycle. The

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