Milestone

Posted: August 25th, 2021

            A contingency plan refers to a response put in place to work in the case of an adverse event that could contribute to financial loss or tarnish the business name.  It is a proactive strategy in which the business managers try to foresee challenges and put in place measures that would apply in the event of such happening. It forms a critical component of the supply chain but takes greater importance in businesses dealing with the supply of food and beverages (Eriksson & McConnell, 2011). It is important to note that this is an industry where products have to be delivered at the right time and are, therefore vulnerable to changes in weather conditions amongst a myriad of other factors that influence agricultural production. In this essay, a contingency plan for a healthy food delivery business in the city of Los Angeles is explained.

            The city of Los Angeles has a high demand for healthy food for children and young adolescents. Thus, there is always a ready market. However, there are situations that may require a business to either reduce the capacity or increase based on the demand. It is important to foresee such situations and prepare accordingly. The first contingency measure that business has adopted is the leveraging of multiple carriers to ensure that there is always a shipping company that is available to transport products to the consumers whether there is an increasing demand or a surge in capacity (Schönsleben, 2018). The company has also created a pool of professional drivers who work in the transport business who can take on the deliveries on a temporary basis.

            Other factors that could affect the profitability of the business are the delayed or failed product launch. The possible contributors of such have been identified and corrective measures put on paper. The awareness that competitors could contribute through price cuts has allowed the company to institute competitive advertising and special offers to be put on the company’s website. Strategies on the exploration of new grounds if some customers turn to competitors have also been put in place.

            In a nutshell, the contingency plan in a food delivery must foresee adverse events and plan for them before they happen. The effects of each scenario should be vivid in the mind of managers to allow them to develop a good contingency plan. 

References

Eriksson, K., & McConnell, A. (2011). Contingency planning for crisis management: Recipe for success or political fantasy? Policy and Society, 30(2), 89-99. doi:10.1016/j.polsoc.2011.03.004

Schönsleben, P. (2018). Logistics, operations, and supply chain management. Integral Logistics Management, 3-59. doi:10.4324/9781315368320-2