The client is a manufacturing company with a turnover of approximately £80m and 150 staff, based on a single site in the East of England. In September 2008 they asked our consultants to conduct a BCM Healthcheck.
Over the years the client had developed a good awareness of the risks to their manufacturing operations and had numerous local contingency plans for dealing with these. Furthermore, with several weeks stock of finished goods stored off-site they can tolerate short-term disruptions to the process without impacting on customers.
However, the BCM Healthcheck identified that the most immediate cost to the business, in the event of a disruption, would arise from sales staff being unable to take orders from clients – an area that had not been considered in any of the existing plans. There is intense competition in this sector so, as well as the immediate cost of lost orders, there is a real risk of long-term loss of market share to competitors within just a few days.
Based on this analysis, we were able to suggest a simple, low-cost solution, based on a mutual support arrangement with another company within the Group; allowing them to move a small number of sales staff to an alternative site within a matter of hours.