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What Is Contingency Planning?

Understand how Contingency Planning fits into the supply chain

Logistics contingency plans or proactive alternative options are prepared for handling emergency or unplanned situations that might occur, such as weather events, labor strikes, traffic or service interruptions. For example, if a customer is concerned about what might happen should a severe disruption strike their external distributor network and prevent the network from functioning, they can look at contingency planning around different models of distribution and generate alternative models and cost implications in terms of identified parameters.

See also: Scenario Planning