The Dangers of Silos in Contingency Planning Exposed by COVID-19

For most of us, organizational contingency planning is a lofty concept. More often than not, we have limited input in what happens when catastrophe strikes. In the rare event we do, our actions are limited to specific functions. Procurement might change the sourcing of materials or dictate the ordering patterns to add safety stocks. Production may increase their throughput to buffer the finished good demand for the customers. Other functions in the company may determine that inventory should be reduced. As you can see, these actions are often knee-jerk reactions and can quickly expose the dangers of silos in contingency planning.  
​

The onset of the COVID-19 pandemic is a prime example of companies implementing supply chain controls in order to offset the effects of the event. Across the board, every company had to take some sort of approach in an attempt to offset what was happening across the globe—shutdowns, shifting production to medical equipment, etc. Most companies; however, did not truly have contingency plans in place for a pandemic and were scrambling to forge a path forward. This highlights the importance of true and real contingency planning. Furthermore, many of the companies that had contingency plans in place either created or executed their plans in silos. This lack of communication or common goal led to a chaotic environment for employees, suppliers, customer service, and more.


This brings me to my ultimate question, “How will the contingency planning of the future look?” Will companies recognize the mistakes of the past for being ill-prepared for any possible disaster? Will companies recognize the dangers of silos in contingency planning and work to break down those barriers? Moving forward, I would expect not only to see a higher level of dedication in contingency planning, but also a more thorough approach to establishing plans with inputs from all functions and all levels. What do you think we will see as far as contingency planning moving forward?