COVID-19 - MSL & DASL - Business Continuity & Capacity Planning

The current situation is adding extra workload for all businesses as they try to plot a way through the crisis. This statement is produced in response to the many questions we are currently being asked that are very difficult to answer.

We are closely following government advice regarding health issues and as you are no doubt aware this is developing on a regular basis. As of yesterday evening (16.03.20), we will be asking any members of staff who have a person living in the same household who has developed symptoms consistent with the virus to self-isolate for 14 days. As we (nor the government) can properly predict the impact of this action it is therefore not possible to produce any truly coherent business capacity plan. As a manufacturer who employs many items of machinery and equipment to fulfil our manufacturing function it is not possible to have many of our functions produced through home working.

We have in place a matrix to prioritise available capacity, based on the following:

1. Availability of raw materials
2. Customers supplying into a government defined “critical manufacturing sector” – i.e. production of ventilators & medical equipment
3. Annualised volume purchased from us (priority high to low)
4. Speed of account settlement (priority shortest account payment terms)
5. Length of business relationship (priority longest to shortest)
6. Any additional support offered (price points, cash flow support, business finance support, long term contracts, additional current & forward business agreements)

We hope our customers can appreciate the logic of our approach.  It is currently predicted that many businesses will struggle to survive through this world-wide crisis and therefore that is our priority, second only to protecting the health of our workforce, their families and that of our customers, suppliers and logistics providers.

We would be interested in any additional support our customers or suppliers can provide to help with stability though this crisis – together we deliver.

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