IHD LOGISTICS
BUSINESS CONTINUITY PLAN
PURPOSE: To sustain the supply of pharmaceutical products following a disaster.
In the event of a disaster proceed immediately to
Section 5.2 and perform actions as listed
Team Name LOGISTICS TEAM
Produced for INTERNATIONAL HEALTHCARE DISTRIBUTORS (Pty) Ltd.
By MGX Business Continuity
Solutions (Pty) Ltd.
Revision No. 0.1
Date of Issue 23 June 2004
Box 2638 / ( +27 11 315 2910Midrand / 2) +27 11 315 1870
1685 / *
TABLE OF CONTENTS
PAGE
1. INTRODUCTION AND SCOPE 3
2. OBJECTIVES 3
3. SCENARIOS 3
4. FUNCTIONS 4
4.1. TEAM LIST 4
4.2. PLANNING FUNCTIONS 4
4.3. DISASTER FUNCTIONS: 4
5. ACTIONS TO BE FOLLOWED 5
5.1. DISASTER PREPARATION ACTIONS 5
5.2. DISASTER ACTIONS 5
5.3. PROCEDURES 10
5.3.1. Identification of Lost Data 10
5.3.2. Emergency Processing Procedures 10
6. RESOURCE LISTS 11
6.1. Critical Documents, Forms, Pre-printed Stationery 11
6.2. Emergency Transport Numbers 11
6.3. Service Level Agreements 11
6.4. Client List 11
7. REFERENCES 11
8. BATTLE BOX CONTENTS 12
9. OUTSTANDING ACTIONS 12
1. INTRODUCTION AND SCOPE
The Logistics Business Continuity Plan is an integral part of the overall Business Continuity Plan (BCP) for IHD. The complete BCP, which identifies and includes all component BCP’s, is held by the Business Continuity Co-ordinator.
This document describes the actions and procedures that must be followed by the Logistics Team to minimise the consequences of a disaster affecting Linbro Park and national inventory control.
The BCP also contains a set of procedures to enable lost data identification and recovery, procedures to minimise subsequent data re-input, emergency working procedures and lists of resources required to enable the above.
2. OBJECTIVES
· To control the national stocks of pharmaceutical products following a disaster.
3. SCENARIOS
Business Continuity Plans for the Logistics operation address each of the following potential disasters at Linbro Park:
· Loss of the Delta system
· Linbro Park warehouse is inoperable
· Offices are destroyed
Separate BCP’s address disaster situations at the regional distribution centres.
4. FUNCTIONS
4.1. TEAM LIST
Logistics
NAME / DESIGNATION / CELL/PAGER NO. / HOME NO.Michael Rossi / Team Leader
David Mashishi / Deputy / 083 292 2529
Norman Sekete / Team Member / 083 407 4664
Simon Mashoeshoe / Team Member / 083 407 4662
Kevin Naidoo / Team Member
4.2. PLANNING FUNCTIONS
· Identify alternate transport, refrigeration, and warehousing options
· Participate in testing BCP’s.
· Review and update this plan after each test.
· Agree authority levels.
4.3. DISASTER FUNCTIONS:
· Implement emergency procedures to control inventory.
· Perform critical processes during a period of downtime.
5. ACTIONS TO BE FOLLOWED
5.1. DISASTER PREPARATION ACTIONS
Action / Pre-requisite / Actions / Resp. / Start / End /LOG 050 / REVIEW EMERGENCY OPERATING PROCEDURE
Review the Emergency Operating Procedure to be implemented in a disaster situation. The objective of which is to maintain balanced inventory levels at the Distribution Centres following a disaster.
LOG 100 / TRAINING
Participate in Testing emergency procedures.
LOG 150 / BATTLE BOX
· Prepare and maintain a Battle Box contents list for minimum emergency requirements.
· Ensure that the Battle Box is populated with a copy of the contents lists and the required emergency supplies.
· Set up off-site storage for the Battle Box
5.2. DISASTER ACTIONS
Action / Pre-requisite / Actions / Resp. / Start / End /LOG 200 / RECEIVE DISASTER ALERT
The Business Continuity Coordinator will inform you of a possible disaster affecting the warehouse operation. Ensure course of action is understood. Establish whether you are required to proceed to the command centre.
LOG 250 / CHECKPOINT ONE
Disaster Alert.
LOG 300 / OPTIONAL - CONTACT TEAM MEMBERS
If required at this stage contact members of the team. Use the cascade method of calling and ensure each person is contacted. Explain what has happened and course of action.
LOG 350 / FURTHER NOTIFICATION
Wait for notification that a disaster has been declared.
LOG 400 / DISASTER NOTIFICATION
The Business Continuity Coordinator will inform you that a disaster has been declared affecting inventory control.
One or more of the following circumstances may be applicable:
· The Delta system may be unavailable for an extended period
· The warehouse may be inoperable
· Office accommodation may be unavailable, in which case the team will relocate to the Command Centre.
· A Regional DC may be inoperable
LOG 430 / CHECKPOINT TWO
A disaster has been declared and the Business Continuity Plan is to be invoked.
LOG 450 / CONTACT TEAM MEMBERS
Contact members of the team. Use cascade method of calling and ensure each person is contacted. Advise whether it is necessary to relocate to the Command Centre.
LOG 480 / CONTACT THE DISTRIBUTION CENTRES
Inform the Regional Distribution Centres of the stock situation following the disaster and the proposed course of action.
LOG 500 / SCENARIO ONE
The Linbro Park warehouse and offices are intact but the Delta system and Optimiser will be unavailable for at least 48 hours.
LOG 550 / IMPLEMENT EMERGENCY OPERATING PROCEDURE
Implement the procedures for manual inventory control, Distribution Centre, and picking loop bin replenishment ref 5.3 below.
LOG 600 / DISTRIBUTE STOCKPILE
Distribute emergency stockpile of forms from the Battle Box.
LOG 650 / ACCUMULATE DATA BACKLOG
Accumulate data backlog ready for processing when access to Delta is restored.
LOG 700 / RECOVER LOST DATA – IWR’s
Transactions, which have occurred during the previous 30 minutes, may have been lost; these must be identified and resubmitted when the Delta system is restored.
LOG 800 / CONTACT CLIENTS
Contact Clients by e-mail using pre-prepared script to reassure them the business will operate normally and there will be minimum interruption of the service.
LOG 1000 / ONGOING EMERGENCY PROCESSING
Carry on with emergency processing until notified that systems are operational and live again.
LOG 1050 / RECOVERY SUCCESSFUL NOTIFICATION
Receive notification of successful restoration.
LOG 1100 / AUDIT INFORMATION
Audit the stock information to ensure accuracy, and report discrepancies to the BCC.
LOG 1150 / RECOVER LOST DATA
Re-enter any lost IWR’s.
LOG 1200 / INPUT BACKLOG DATA
Input any IWR’s and Replenishment Requests processed manually.
LOG 1300 / CHECKPOINT THREE
Normal Delta based operations have been successfully resumed notifies the BCC.
LOG 1350 / SCENARIO TWO
The Linbro Park warehouse is inoperable, unusable even for storage, and is not repairable within a week.
LOG 1370 / STOCK ASSESSMENT
Together with the Responsible Pharmacist determine what stock is salvageable and can be relocated for subsequent distribution. The urgency for this will depend on the condition of the warehouse.
LOG 1380 / STOCK RELOCATION
Relocate salvageable stock of critical products to the Distribution Centres and a nearby warehouse to be located at the time, depending on the volume. Use the emergency transport identified for such an eventuality.
Salvageable stock of non essential products (OTC) will be transferred to wholesalers.
Available warehouse staff will be assigned to assist with the movement of salvageable stock and the isolation of damaged stock for further inspection by Clients.
LOG 1400 / REFRIGERATED STOCK ASSESSMENT
Together with the Responsible Pharmacist determine what refrigerated stock can be relocated for subsequent distribution. The urgency for this will depend on the condition of the refrigerated stores.
LOG 1450 / REFRIGERATED STOCK RELOCATION
Relocate salvageable stock to the Distribution Centres, refrigerated stores to be identified at the time, depending on the volume. Use the emergency refrigerated trucks identified for such an eventuality.
Available warehouse staff will be assigned to assist with the movement of salvageable stock and the isolation of damaged stock for further inspection by Clients.
LOG 1500 / CLIENT NOTIFICATION
Advise Clients of any stock losses and the necessity to place emergency orders on their supply sources.
Advise Clients of the new delivery address.
LOG 1550 / ONGOING EMERGENCY PROCESSING
If the Delta system was also affected by the disaster carry on with emergency processing until notified that systems are operational and live again, then follow steps LOG 1050 to 1300.
LOG 1600 / EMERGENCY INVENTORY CONTROL
For as long as there is no permanent central warehouse stocks of critical products must be kept at the Regional Distribution Centres and temporary warehouses. The control of this situation will depend entirely on the amount of saleable stock following the disaster, and the length of time taken to establish a new warehouse or repair the damage to Linbro Park.
LOG 1630 / POSSIBLE OFFICE RELOCATION
Depending on the circumstances the Logistics office may transfer with skeleton staff to Durban.
LOG 1650 / AUDIT EXPENDITURE
Audit all extraordinary expenditure, in particular for emergency transport.
LOG 1700 / RESTORATION OF CENTRAL WAREHOUSE SERVICES
As soon as there is an operable central warehouse, bulk stocks will be relocated from the regional Distribution Centres and temporary warehouses.
LOG 1800 / CHECKPOINT FOUR
IHD returns to previous functionality.
5.3. PROCEDURES
5.3.1. Identification of Lost Data
As soon as the Delta system is restored check that the most recent IWR’s processed are still recorded and re-enter any missing details.
Further loss of data, specifically replenishment stock picked for the Regional Distribution Centres or the picking loops, will be identified by the Warehouse or Kite Logistics.
5.3.2. Emergency Processing Procedures
5.3.2.1. Loss of the Delta System
Inventory data will only be unavailable for a maximum of two days, replenishment of the Regional Distribution Centres will only be undertaken when a Distribution Centre reports that a critical product is either out of stock or well below the minimum stock level.
Replenishment Requests will be received from the picking loops when bin stocks are low. A formal replenishment will be prepared indicating the quantity to be picked from bulk storage and sent to the warehouse for processing.
Clients will be advised of a possible temporary delay in the weekly reporting cycle.
Identification of expired stock will continue based on the last report available.
5.3.2.2. Loss of the Warehouse
In conjunction with the Responsible Pharmacist salvageable stocks of critical products are to be identified, and relocated to Distribution Centres and an alternative warehouse depending on the volume. An alternative should be established as a Regional Distribution Centre in the Delta system. All salvaged items should be processed on IWR’s for entry into the Delta system as soon as possible.
Non essential salvaged products (OTC) should be transferred to wholesalers.
Damaged stock should be processed according to SOP 30 Section 4.0.
As soon as the Delta system reflects the inventory status after processing of the damaged stock the Clients must be informed so that emergency replacement of critical product stocks can be effected. Regional Distribution Centres must also be advised of any no stock situations.
5.3.2.3. Loss of the Linbro Park Offices
If the offices at Linbro Park cannot be used Logistics may relocate to the Durban DC.
5.3.2.4. Backlog Recovery Procedure
All manually raised IWR’s, Replenishment Requests, and Damaged Product Forms are to be held until the Delta system is available, and are to be processed after the re-entry of any lost data and prior to the processing of “live” transactions.
6. RESOURCE LISTS
6.1. Critical Documents, Forms, Pre-printed Stationery
Contained in the Battle Box.
6.2. Emergency Transport Numbers
· RTT
· Refrigeration services
6.3. Service Level Agreements
Replacement server required for “Freakazoid” within 48 hours.
6.4. Client List
Contained in Common Data
7. REFERENCES
For a list of references please consult the Common Data document.
8. BATTLE BOX CONTENTS
NOTE: The contents of the Battle Box are for business continuity
Description / Responsibility / Date Included /The “BATTLE BOX” itself, ideally a lockable (padlock acceptable) metal trunk
Inventory of Battle box contents
Business Continuity Plan
Standard Operating Procedure S30
Writing paper, pens, pencils
IWR forms
Replenishment Requests
Damaged Product Forms
Client List
9. OUTSTANDING ACTIONS
NOTE: The deployment of this business Continuity plan may be compromised whilst the following outstanding actions remain incomplete.
Description / Resp. Person / Start Date / End DateInventory of Battle box contents
Provision of names and contact details of Deputy and Team Members
Provision of emergency transport numbers
DOCUMENT NAME / REVISION / ISSUE DATE / PAGE
IHD- Logistics / 0.1 / 23 June 2004 / 1 of 11