Proactive Measures to Avoid Business Disruption

business disruption crisis management
The NAFEM Show June 2021 728×90

Article contributed by Mike Berman, COO, Day & Nite/All Service

The recently released bipartisan joint Senate Committee on Homeland Security & Government Affairs/Committee on Rules & Administration thorough examination of the January 6th Capitol Hill riot is required reading for anyone determined to apply lessons of history for preventing disruptions in any endeavor.

Of course January 6th’s magnitude is unlike anything we will experience in business, but the report offers a tale of poor assessment, poor planning, poor communication and coordination between departments, poor preparation forcing critical decisions in the heat of intense circumstance, lack of essential equipment all further distorted by managerial indecision and organizational uncertainty. Hospitality can be a chaotic business even in the most predictable times, as we rapidly build up steam to fully restored access and operations guarding against any and all of the negative planning and execution forces must be the industry’s management priority.

Leave it to Bruce Springsteen to signal the worst of lockdowns are behind us, as The Boss will officially reopen Broadway in less than 2 weeks from today the most recent and telling sign we are really back to normal! Foodservice could not have been prepared for the rapid and lengthy shutdowns starting March 2020, significant evidence shows a mixed bag of solid preparation for the early stage 2021 reopening, and with this next phase to full restoration clearly in sight we must all get it right. Just as the Senate committees reported gross failure to recognize and act on warning signals apparent a month before January 6th, hospitality professionals have to treat flashing red lights of operational danger with urgent seriousness.

Global transportation grids have never fully recovered from the mid-April stuck container ship in the Suez Canal and are rapidly deteriorating making it more difficult to source raw materials, components, parts and finished product. Globally, basic commodities like aluminum are in scarce supply creating major manufacturing delays. The nation’s crumbling infrastructure offers no relief as further validated in a Federal Highway Administration study showing approximately 660 million hours in shipment delays due to poor road conditions. Failure to recognize and plan ahead of this serious conspiracy of downstream inadequacy is an invitation to needless risk at a time hospitality must firmly set its sights on maximum profitability and prosperity.

More specific to foodservice, analysis shows approximately 20% of all parts orders are either back ordered or subject to split shipment (order 3 items, get only 1 or 2).  In some instances, distributors are reporting inventory back orders as high as 10%, with better suppliers hovering around 4% out of stock. Ever-present immutable laws of supply and demand are also working overtime with industry equipment manufacturers and distributors announcing the next round of parts price increases, ranging between 5 and 10%, effective between now and early August 2021. Learning from the bipartisan Senate report that isolated numerous failures to act on sound information and facts prior to January 6th,  conscious that hospitality’s immediate and longer-term future will be shaped by how it successfully manages these considerable variables, smart foodservice professionals are actively planning, coordinating and organizing proactive strategies with critical suppliers right now.

Belgioioso January 2021 728×90

Everything above captures known facts and predictable trends. Although Covid-19 might truly be fading in our rearview mirrors, whether its food safety or pandemics, from salmonella to Legionnaire’s Disease or what might come next, already there’s growing concern about the next crisis coming around the corner. Anything less than full preparation, the type found in Day & Nite Performance Solutions highly integrated suite of engineered food safety, indoor environmental quality, infrastructure protecting technologies – products – services would be tantamount to the same combination of poor planning, preparation, communication, coordination and execution causing previously unthinkable havoc in the hallowed US Capitol halls.

Even casual readers of this weekly column know the Day & Nite family of companies has not only been way ahead of these trends and rather predictable patterns, the commercial HVAC, Refrigeration, Cooking and Plumbing installation – maintenance – repair company has been at the forefront of leading industry transformation to minimize if not entirely eliminate equipment downtime.  Incorporating world class practices, leveraging deep supply chain expertise and relationships, incubating technologies to deliver more consistently superior customer experiences, Day & Nite/All Service/Popular Plumbing/Performance Air Mechanical provides both guidance and certainty of execution to ensure its customers do not suffer business disruption in these high stakes yet uncertain, perhaps even combustible times. Indeed, the Company has recently published a Paradigm Shift in the Market report, complementary copies available to Total Food Service readers.

To get a copy of the Paradigm Shift in the Market report or to learn how you can best assure equipment uptime and protect yourself against business disruption, email [email protected]

Previous post Bizfluence Reinvents the Social Business Platform for 2021
Next post Customers Bancorp Shareholders Overwhelmingly Approve Proposals in Online Annual Meeting