Introduction With increased business risks and competition most businesses around the world are taking measures to ensure that they always remain in operation despite disruptions in the production process which could result from technological failure, strikes by workers, resignation by key personnel or natural disasters such as floods and fire (Hayes, 2013). According to Rothstein, (2013), developing a contingency plan will make sure that the firm resumes operation within a shorter time. This paper discusses contingency plan as applied to Bright Light Electricals; a hypothetical business and looks at the benefits of contingency plan to the business, how to develop the contingency plan, implementation of the contingency plan and the ethical considerations.
Bright Light Electricals
Bright light Electrical Limited is located in New Haven with branches in Uganda and Nigeria. The company majorly deals in the manufacture and supply of electrical materials and appliances to retail and wholesale suppliers of electrical materials in New Haven, Uganda, and Nigeria. The company is headquartered in New Haven with the main market for its products being Africa. The company is planning on rolling out several branches in various parts of the world with a keen interest in Africa in order to cut on supply and delivery costs and to also enable quick delivery of goods to customers. The company borrows strategies advanced by Broder and Tucker, (2012) and therefore aside from reducing transportation costs, the company also plans to maintain just in time inventory systems with its major customers hence the need for moving operations closer to the major customers.
The company has 500 employees in the three regions and boasts of its modern technology that enables it to manufacture high-quality electrical materials that grant it a competitive edge in the market. The company employs a rigorous recruitment system that ensures that it attracts the most talented individuals to serve in its manufacturing and supply departments just as stated in the book by Broder, and Tucker, (2012). The Company’s mission for supply chain management is to create value by transforming the transactional purchasing function into a strategic supply chain management division. The transformation to Supply Management is a key factor in delivery of its commitments to customers. The company acknowledges that with an increase in innovation pace and a decrease in lead time, it’s essential to develop stronger relationships with suppliers just as advocated by Kildow, (2011). Its tools for suppliers simplify how it's able to work with suppliers. They are based on standardized and aligned supply management processes, providing suppliers with a single point of contact to Bright light electrical. They improve transparency, communication, and decision-making and supplier relationship management.
The company boasts of being among the largest manufacturers and suppliers of electrical materials in its regions of operation including but not limited to: solenoid and air actuated valves, industrial pumps, liquid level controls, pressure switches and electronic drain valves, Cooper fuses and arresters, as well as cutouts, insulators, contact parts, and mountings, offorce gauges, height gauges, micrometers, verniers and video inspection equipment, light bulbs, incandescent, fluorescent lamps, Ballasts, HID, fixtures and lighting accessories.
The company majorly draws its competitive advantage from its pricing strategy, superior technology, and quality services given to its customers (Kildow, 2011). The company also grants larger purchase discounts to customers who buy in large quantities thus enabling it to win major supply tenders. The company’s price for its goods rates the lowest compared to its competitors given that it produces in bulk thus enabling it to reduce the costs of operations (Kildow,