Contingency planning is important
in any business. Previously, I wrote an article regarding Preparing
Your Supply Chain for Unexpected Weather, and the need to have a
contingency plan developed in order to prevent disruptions in your supply
chain. However, contingency planning is
not only critical for weather disasters, it is also critical in other instances
as well, for example, labor strikes.
Being
that Source One is located in Philadelphia, the need for contingency planning
these days is heavily apparent. CNN reported as of midnight Monday, October 31st
that Philadelphia public transit workers were going on strike. “The
Southeastern Pennsylvania Transportation Authority, known as SEPTA, said the
strike would affect all subway, buses, and trolley routes in the city. About
800,000 people use the city’s transit system daily.” SEPTA’s Regional Rail,
which covers a limited area, will be the only option for public transport in
and around the city.
How can
businesses prepare and prevent disruptions? Below are some of the tips included
in my previous article regarding preparing your supply chain:
Identifying your suppliers
Considering potential threats
Analyzing Demand
Filling the gaps
In anticipation of the strike, SEPTA did release a
contingency plan. In reviewing the plan in comparison to my tips for preparing
a supply chain, let’s see how SEPTA shaped up in disaster preparedness.
In Identifying
“suppliers”….SEPTA scored Moderate. Although
SEPTA has service Regional Rail Lines that are continuing to operate, they are
operating near capacity. Additionally, since SEPTA workers are union labor,
they do not have a way to push past the strike until the contract issue is
resolved. And lastly, the Regional Rail Lines may be making adjustments to
their schedules or routes in order to accommodate passengers.
In considering
potential threats…..SEPTA scored Poor.
Union labor strikes are always going to be a threat for SEPTA. Resolving
contracting issues prior to contract expiration is crucial. There are more than
4,700 union members who are part of the strike in the City Transit Division,
and although SEPTA might know this is a potential threat, having a back-up plan
or other means of transport for affected public transportation users is part of
disaster preparedness.
In Analyzing Demand….SEPTA
scored Poor. There are over 800,000
people who use the transit system daily and need the public transportation for
work especially. It is not helpful to expect Regional Rail lines to solely
accommodate this many people since the Regional Rail Lines are already
operating near capacity, and the demand for public transportation is not going
to diminish.
In Filling the Gaps…SEPTA
was Poor, yet again. If SEPTA’s
contingency plan states that, “Center City Regional Rail Stations in the
evening will be working to answer travel questions and help customers, but it
is important to remember with Transit services not in operation it may not be
possible to complete your trip,” you can be sure that a best practice of
filling the gaps in disaster preparedness was not checked off on SEPTA’s list. Filling
the gaps would mean providing transit users with other means of travel, whether
it be taxis, Uber, Lyft, other buses, etc. for the same cost as what they would
be paying to take SEPTA.
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