Business Continuity Planning and Supply Chain Management

Business Continuity Planning (BCP) has evolved significantly and gained acceptance since the events of September 11, 2001. It is defined in the literature as an integrated set of formalized procedures used by an organization to recover from events that disrupt business operations. These procedures call for vertical and horizontal integration of all functional groups within the organization as well as with all external groups that interact with it. Information technology (IT) plays a central role in that integration. This paper reviews and discusses the current state of business continuity planning as it applies to the supply chain and points to the efforts undertaken by business and government to mitigate the risks of supply chain disruptions. The organization’s supply chain continuity plan must extend to all supply chain participants, as illustrated by real-life examples. The most advanced business continuity planning requires equally advanced IT tools to increase visibility both inside and outside the organization and to automate supply chain planning and execution. The paper therefore extends a framework for supply chain continuity to include an IT component that runs supply operations and supports a plan for their continuity.