Anyone involved in materials handling understands the concept of a chain of supply. However, we don’t always appreciate just how delicate that chain can be until a link in the chain breaks. The longer the chain, the more risk there is of breakage. In a global business village, a civil dispute in a small country or a natural disaster somewhere else can rock the world’s economy. Even if we are not personally affected by these events, we can learn from them.
What could a volcano eruption in Iceland have to do with the running of a materials handling warehouse in Illinois? As you watch the evening news, you feel sorry for all the people and businesses that have been affected by the disaster, but thankfully, yours is a local business and there is nothing you rely on that comes from Europe.
The situation, of course, was far different in Europe, where almost all the major airports were shut down for weeks following the eruption of the volcano in Iceland. Thousands of businesses were crippled by that occurrence. A few businesses were prepared, though, even for such an unlikely occurrence. These were the businesses that already had a “Plan B.”
It’s that “Plan B” that all businesses need. There are any number of “volcanic” activities that could have a devastating effect on your business. A piece of vital equipment, like a forklift, could unexpectedly break just when you need it. A labor dispute could be holding up delivery of some parts you simply can’t do without.