Business Continuity Planning in a Large Retail Supply Chain Research Paper

Business Continuity Planning in a Large Retail Supply Chain - Research Paper Example Because of my current position problems with the supply chain can directly affect my work load and I want to know more about a retail supply chain and how the supply chain connections can be protected. This paper will be geared towards professionals in both business continuity and retail management. I would like the people in these professions to be able to learn from my paper the need for a better BCP for protecting a company’s supply chain. Opening Statement: Business continuity planning in large retail supply chains is not thorough enough. Large retailers that depend on outsourced supply chains are not managing their supplier risks. The Marsh Supply Chain Survey results show that no one is managing their supply chain risks very well. In fact only about 33% of them are even managing their risks moderately effectively (Hiles, 2011). According to Hiles (2011), supply chain is an all inclusive term that constitutes the management of both downstream and upstream relations with c lients and suppliers. This is desirable because it allows for timely delivery of superior client value at a lesser cost. Certainly, this is sustainable because both parties benefit optimally and are able to sustain their wellbeing through time. In order to protect this process, businesses have to look at the end-to-end supply chain process and build a Business Continuity Plan (BCP) that covers all parts of it. ... leaner business, businesses can â€Å"enhance their operational effectiveness, which essentially improves firm performance and competitiveness† (Liu, Lin, Hayes, 2010, p222). However if a business fails to manage the risks associated with running leaner than they will lose all of these benefits. By not managing their supply chain risks, large retail companies are leaving themselves vulnerable to possible business failure. Hypothesis: This research is informed and guided by distinct assumptions. To begin with, the study presumes that both upstream suppliers and downstream, consumers directly affect the continuity of the retail supply chain. Large retailers should therefore clearly analyze their contribution to business failure or success and make necessary and timely interventions. The study is also based on the assumption that current large retailers are faced with complex risks that stem from the relationships that they establish and maintain at various levels. Further, it pr esumes that inability to manage the risks effectively not only reduces efficiency but also increases the susceptibility of retailers to failure. Finally, this study presumes that relevant interventions can only be identified addressed in a timely manner through continued monitoring. From this point of view, business continuity plans are therefore vitally important. Discussion of Findings: As indicated earlier, retail supply chains are increasingly becoming more and more complex. These can be attributed to the increasing complexity of the relative relationships. Globalization trends have compelled businesses to explore various options in a bid to maintain a competitive edge. In his study, Hotchkiss (2010) found out that the complexity of the business environment has diversified the risks that