The Role of a Supplier in a Disaster or Emergency

Craig Hodges

March 6th 2012

IBI Wheel of Companies

Nashville

Lynnwood

Port Angeles

Great FallsMissoula

Spokane

Pasco

Peoria

Yakima

Salem

Bend

Medford

Eugene

Denver

Austin

Houston New Orleans

Miami

Pompano Beach

Lufkin

Paris

Oklahoma CityTulsa

Wichita

Kansas City

Lincoln

Omaha

Duluth

St. Paul

Davenport

Peoria

Cleveland

Huntersville

TuckerRockford

Montgomery

Winslow

Chelsea

Champaign

Stockton

Aberdeen

Fairfield

Itasca Valley ViewWestminster

Bridgeport

Seattle

Sacramento

Los AngelesOntario

San Diego

Las Vegas

Phoenix

El PasoDallas

San AntonioOrlando

Ft. Lauderdale

Jacksonville USLJacksonville

Birmingham

MemphisAtlanta

Florence

Charlotte

St. Louis

Louisville - JAS-USLLouisville Elkridge

PhiladelphiaMt. Laurel

Long Island

WorcesterBuffalo

Pittsburgh

Detroit

ColumbusIndianapolis

Tampa

Chicago

IBI Distribution Centers

Des Moines

15

Salt Lake City

Emergency Preparedness

• Do your suppliers have Disaster Recovery Plan?

• Have you reviewed it?

• What role do they play in your recovery plan?

• Are they aware of it, and are expectations understood and agreed to?

Business Continuity Overview

• We have a Business Continuity policy and plan that is reviewed annually and approved by the board. Risk assessment done enterprise wide:

– Governance – 3 level cross-functional committee • Executive, BC Preparedness, IT

– Replenishment – multi-vendor strategy, IB personnel multi-locations, multiple ports of entry and transportation.

– Redundancy – decentralize all key functions, operations, IT, service, logistics– Resilience – alternative power sources for all mission critical sites– Recovery Plans – Customer support plans for declared, long term or area-wide

emergency. Evaluate the same for our suppliers.– Testing – Regular testing of our plans are done at all levels. Data, Telephony

System redundancy and server level outages – Awareness – Annual BC preparedness meetings and trainings are held at all

locations.

Business Continuity Overview

• Customer support in a declared emergency?– BC preparedness team mobilizes action plans

• Transfer products to distribution facilities of anticipated high demand or recovery items.

• Route orders to other distribution facilities to supply product to stricken areas.

• Mobilize any customer contingency plans as agreed to.• Generate manual replenishment orders from RRCs to local distribution

facilities.• Activate fuel replenishment plans via our supply contracts.• Ship standby telecom and infrastructure equipment overnight to affected

facilities.• Pull stock generators to operate facility as needed.• Mobilize sales force to gather and communicate customer needs

Business Continuity Overview

• Customer Support for long- term, area-wide emergency support– Additional Critical Customer Response Plan (CCRP) is activated and

deployed• CCRP Team relocates to disaster area• Mobilize portable distribution facility to distribute product from.• Mobilize wireless and satellite technology to operate facility• Activate fuel replenishment plan• Transport initial stock and replenishment inventory• Mobilize sales force to gather customer needs.