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Continuity 2 2 301 Ltd. Not everything in life is black or white. Managing Consultant David J. Window AMBCI/CIPS Continuity 2 2 301 Ltd Company Registered Number: 07714424 d ave.window@continuity22301.co.uk. Continuity of Supply.

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continuity 2 2 301 ltd

Continuity 22301 Ltd

Not everything in life is black or white

Managing Consultant David J. Window AMBCI/CIPS

Continuity 22301 Ltd

Company Registered Number: 07714424

dave.window@continuity22301.co.uk

continuity of supply
Continuity of Supply

Just as Business Continuity is anchored to business objectives and goals so is outsourcing.

An outsourced service provider as a strategic partner should share the objectives and goals of the business

It follows therefore that if business continuity plans are developed to lessen the impact of disruptive events involving urgent activities then outsourced service providers must match their objectives and their own plans to that of the client

what is a strategic supplier
What is a strategic supplier?

Their presence and performance is key to achieving your company business objectives

Usually therefore involve a long term relationship

Requires top management buy in and support between partner top management

Their investment plans, financial status, business continuity plans should align to yours

You need to be seen as core to their growth strategy

what to consider when outsourcing activities
What to consider when outsourcing activities

Decide who is best geared to fund the service you or the outsourced partner?

How technically diverse is the service?

Who has the competence?

Do you have the same values, objectives are they at odds contractually?

When you choose the outsource partner, investment is required in supplier relationship management, are resources and budget available?

If you are constantly in combat with your service provider stressing their business model will tear apart the relationship, think about the need for good contract management

procurement analysis
ProcurementAnalysis

Examine the strategic importance of the service to the business

Assess the market, can it provide the service you need

Assess the vendors is there a vendor that meets your strategic need

Analyse the risks, can you insert mitigation strategy now

Ensure business continuity plans exist and are appropriate for your business

do mitigation strategies increase costs or add value
Do mitigation strategies increase costs or add value?

Multiple vendors/multiple chains

Buffer stocks

Contingency stocks

Strategic stocks

On shore/off shore or both?

Manufacture or outsource?

Just in case or just in time?

procurements role with the outsourced supplier
Procurements role with the outsourced supplier

You should not be in a tug of war with the outsourced supplier

They are a strategic partner and procurements role starts with helping the executive make the decision to outsource

They may undertake a pilot scheme and report on the outcome

They will derive the contract terms and conditions and SLA’s

They should provide post award contract management

a water utility which activities are core
A water utilitywhich activities are core?
  • Raw water treatment
  • Waste water treatment
  • Maintenance of the underground network
  • Supply chain services
  • Logistics
  • Financial services
  • Audit
  • Asset management
  • Engineering
  • Media Communications
  • Human Resources
  • Call Centre Management
  • Information Technology and Communications
  • Facilities Management
these have been outsourced
These have been outsourced?
  • Maintenance of the underground network
  • Supply chain services
  • Logistics
  • Audit (partial)
  • Asset management
  • Human Resources (partial)
  • Engineering
  • Call Centre Management
  • Information Technology and Communications
  • Facilities Management
which have been insourced again
Which have been insourced again?

Engineering

Call Centre Management

Information Technology and Communications

Supply chain services

Asset management

tie the contract securely your never as close as the day you sign

Contractaward

Tie the contract securelyYour never as close as the day you sign

BCM?

SRM?

Distance

Contract Concept Time Contract Determination

juggling outsourcing and running lean
Juggling Outsourcing and running lean

When you outsource you do not remove the risk you transfer it

Running your business “lean” will increase the risk

Consider single sourcing Vs. multiple vendors

Outsourcing and “lean” operations may give rise to greater savings

Some outsourcing and “lean” strategies will increase your risk

building resilient supply chains
Building resilient supply chains

Pre contract award analyse risk and mitigation strategies

Understand if outsourcing or running “lean” adds to your risk profile

Post award manage your supply chains

Undertake supplier relationship management

Carry out surveillance audits with your suppliers regularly

sla s and the need for exercising by outsourced partners
SLA’s and the need for exercising by outsourced partners

Service level agreements can put unnecessary stress on the outsourced supplier even in normal day to day operations

During an incident these service levels need to be met

The outsourced supplier may be providing a service specific to your recovery

unplanned disruption
Unplanned Disruption

42” Water main burst, Huyton, Liverpool-19th July 2011

Resolving this event is in the hands of two outsourced suppliers

rehearse achieving your sla
Rehearse achieving your SLA

Involve your outsourced supplier in the writing of your business continuity plans

Similarly involve yourself in the creation of theirs

Understand the contract scope and terms and conditions

Are they explicit regarding business continuity events?

Rehearse your joint actions together

Post exercise actions may lead to contract amendments

Contract amendments can lead to a variation of costs

the development of supply chain as a profession

The Development of Supply Chain as a Profession

Continuity22301Ltd

Adding value with resilience

Risk, Continuity and Supply Chain

Business Continuity Management

Business Continuity BS25999 Audits

Business Continuity Coaching and Training

Not everything in life is black or white