We have already told you about the impact of the coronavirus on the world of e-commerce and the market in general, this unexpected event has revolutionised many aspects of our lives.
One of these aspects being commerce. The supply chain and logistics in general are elements that are common to almost all trading companies that have suffered the most from the negative effects of the pandemic. Weaknesses that emerged precisely as a result of the severe stress test due to the pandemic crisis. These are useful and valuable lessons from which we can learn to improve and strengthen our systems.
From Disaster Recovery to Business Continuity
In the business world, whether digital or traditional, risk is an integral part of the game. On the other hand, it is precisely the amount of risk that determines margins, gains, sudden descents and equally sudden ascents. So risk factors in general are one of the things you should be aware of when deciding to create a business.
Here, two fundamental concepts come into play to fully understand this theme:
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Disaster recovery: a system with which a business reality designs and implements measures to recover data and infrastructure after a crisis.
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Business continuity: unlike the previous one, it relies on prevention rather than recovery a posteriori. It is based on BIA (Business Impact Analysis) and generally serves to ensure the continuity and recovery of both data and infrastructure and the vital processes of a company.
Risk Management
When we talk about risks and crises, one of the most important keywords is Risk Management. This is related to prevention, that is to say, calculating how likely it is that a given crisis will happen and trying to obtain as much information as possible in order to accommodate the crisis in a prepared manner and severely limit the damage. However, one must bear in mind that risk, by its definition, is something random and unexpected.
How to ensure business continuity
As is the case for various sectors of trade and the business world in general, it is always a good idea to create flexible and dynamic systems. This also applies to the supply chain, which we have seen subjected to a heavy stress test during this pandemic crisis. Real-time monitoring of the various factors that have or could have an impact on the supply chain is a forward-looking move to prevent damage from a sudden crisis and to ensure business continuity.
How do you make your supply chain flexible?
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Amplify or change your supplier roster: this way, if an unforeseen crisis should occur, you will have a better chance of not having to interrupt your business and you will have more room for manoeuvre to intervene on the other aspects.
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Review the best logistics solution: after carefully studying the reference environment for your business, the best logistics solution will not always be the preferred one. Try to do regular stress tests and checks to see if it's time for a change.
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Diversify production sites: with this kind of action based on diversification you can create watertight production clusters, ensuring that in the event of a loss crisis only partial losses are significantly less serious and impactful on business continuity.
Prevention as a competitive strategy
In the world of commerce and business in general, turning a risk into a competitive advantage is an important and positive move for the company. By activating a strategy of perennial monitoring of the elements of potential risk, both the need for defence, in the sense of both prevention and competition, are satisfied at the same time.
In the world of business, one of the most valuable aspects is information, which is why a risk management strategy is something fruitful but also challenging from an economic and energy point of view. That's why it's always a good idea to get a secondary advantage.
Crisis and communication: business continuity as a B2C message
Business continuity also passes through the communications of a company and vice versa. During a crisis, with a view to optimising the results of a single effort, which is very dear to the business world, ensuring the business continuity of one's own company also takes on the secondary function of launching a message to its audience.
During these difficult times, launching the right messages aimed at your target audience, looking for call to action, creating communities and offering support are moves that have proved successful for companies and their brands even during this health crisis that we had the misfortune to witness.
To communicate efficiently and inform your users about any exceptional event on your e-commerce, try the Information Banner module, an ideal tool to improve the user experience and customer care in an effective and fast way.
