Reactive Mitigation -WarRoom Process

Resources alignment & recommended actions for Risk Team

1. As soon as a disruptive event is captured by Resilinc system, it calculates the exact impact for each customer and shares a relevant WarRoom notification with impact details to all customer users.
2. As part of SCRM’s people and process alignment, customers must develop risk management processes or playbooks for reactive and proactive risk management. The risk team should have dedicated resources with well-defined roles and action items to follow.
3. Once the users receive WarRoom impact notification from Resilinc, the company’s Event Lead starts contemplating their next steps. The Event Lead checks the severity of the event on the portal and collects Supply Chain related information, also called Mission Critical Information. This information can include data on Suppliers, sites, parts, emergency contacts, potential sub-tier impact, alternate site capabilities, and redundant manufacturing along with analyzing revenue at risk.
4. In addition, the Event lead also checks for safety stock and other means at his disposal. If the Event Lead believes that the event has caused no damage, they can choose to close the event or they can proceed with the next step to Activate the Event.
5. In the above WarRoom example (Figure 3 – WarRoom Summary) out of the 48 suppliers in Taiwan, only one received the Impact Confirmation Request which was not confirmed. Apart from that, none of the sub-tier suppliers, sites, sub-tier sites, parts, products, and business units suffered any damage. The potential revenue impact was $12 million but since no damage was reported, the Revenue at Risk is zero. If the Event Lead can confirm no impact to any suppliers, they could choose to Close the Event.
   1. Let us assume that some suppliers and sites have indeed confirmed impact, which may lead to operational impact / supply shortages/ revenue impact. In such case,  the scenario & actions required from risk team will be different.
6. Here, the Event Lead entrusts the responsibility to a Risk Core Team by notifying and directing them. The job of a Risk Core Team is to assess and review Supplier Impact responses. Furthermore, the team must organize a meeting for strategizing on Crisis Management. Mission Critical Information along with any additional data related to the impacted suppliers can be critical in strategizing next steps and making operational decisions.
7. Crisis Management includes a few of steps as mentioned below:
   1. The first is to keep a continuous track of supplier responses and the second is to communicate with all the stakeholders of the damages and proposed recovery plans. This free flow of information is essential to understanding the right situation.
   2. The Resilinc portal allows you to collaborate with all the teams and stakeholders through the integrated Collaboration (chat) functionality.
   3. Once the Collaboration process is underway, stakeholders will work to determine the correct course of action. After the end of required steps, if the concerned parties believe that the impact with respect to suppliers/sub-suppliers’ site is significant then they can opt to initiate a contingency plan based on company priorities. Otherwise, the team can choose to Close the Event.
8. WarRoom mitigation process includes following steps:
   1. The first step is to identify alternate sites and find alternate parts.
   2. The second step is to activate an existing playbook or create a new mitigating workflow.
   3. The third step involves working with the Inventory/Warehouse team to ensure there is enough safety stock, in-transit and WIP Inventory.
   4. Maintaining inventory levels is followed by demand forecasting and financials, along with creating a budget for additional funds.
   5. To gather further information about the suppliers, a survey is launched.
   6. Since the mitigation plan must be successfully completed within a limited time period, this process must be expedited.