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Accepting that unforeseen circumstances can occur it is vital that the necessary steps for recovery have been identified and agreed in advance. Normally this process is undertaken prior to the physical implementation of a new WMS. However, often the procedures become "out dated" because of changes in business process/practice. Sometimes disaster planning was never implemented as part of the original project because of time/cost implications. The supply chain is becoming leaner, with shorter customer order lead times and retail stores holding less stock. This combination means that any failure of the distribution centre to deliver orders on time can very quickly have a negative impact on the trading performance of the outlets it services The impact of a system failure at a distribution centre can often be mitigated by re-routing orders through other facilities in the supply chain (if they exist).
Re-routing store order carries a high cost to distribution. The "downed" facility has manpower but nothing to do with them. The distribution centre receiving the re-routed orders will need more time, labour and transport to get the orders out (assuming that the distribution facility has enough inventory). | What do you do if there are no other facilities in the supply chain?The EXDS contingency planning review will assess what procedures and processes will need to be implemented should there be a critical failure of the warehouse management system or its associated infrastructure. The review will assess any and all current procedures to ensure that they are suitable for your operating environment of today. The following areas will be covered in the contingency planning review:
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| Option | Description | Risk | Cost | Advantages | Disadvantages |
| Do Nothing | Do not implement any disaster recovery contingency plan | High | Low | Low Cost | High Risk |
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