Having considered the business’s cash flow you need to make sure that the operations can continue. As employees are asked to work from home and supply chains become even more stretched this may become more difficult.
Management need to consider a wide range of issues, but the list below, hopefully, encapsulates the most critical:
- Discuss with suppliers and third parties their plans on how they are able to fulfil your business needs. For example, can your transport company deliver goods to your customers? Are they aware of the Government’s relaxation of drivers’ hours rules, which can be found here: https://www.gov.uk/government/publications/covid-19-guidance-on-drivers-hours-relaxations/coronavirus-covid-19-guidance-on-drivers-hours-relaxations
- If necessary hold conference calls with key suppliers to maintain communications and ask them about their contingency plans.
- Understand agreements/contracts so that in the event suppliers are unable to fulfil them you know what steps you need to take in order to get alternative supply.
- Make sure that, to the extent you can, you have back up suppliers. Check if there are any ramifications of having to use them, such as legal contracts with existing ones, certification of products where a particular supplier is “designed in”. Check terms that they will trade with you (noting our observations in 2c above.)
- Property leases – if you are a commercial tenant your business is meant to be protected from eviction, similarly to private tenants, details of which can be found here https://www.gov.uk/government/news/extra-protection-for-businesses-with-ban-on-evictions-for-commercial-tenants-who-miss-rent-payments?utm_source=e34139d1-5c25-473c-98c4-4e67b356f642&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
- if premises are closed, check with your insurers whether or not your insurance covers absence from the operations
- check that your insurance covers your employees who are working from home
EMC’s guide to a successful approach considering the benefits and challenges!
‘Sink or swim’ – do not give up, now’s the time to focus on the future and go on the offensive if you want to restore growth to your business
We will seek to inform you with any critical updates as they occur, updating this Operational Guide for Management as necessary.
Should you have any comments, questions or wish to discuss any of the above with us or need help in deciding what to do please contact your usual EMC Consultant or Michael Pay on email@example.com or +44(0)1273 945 984.
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