Case Study  Gap Inc. is a well-established Retailer based in San Francisco. Its operations span the world within markets in most every developed country with HQ facilities, wholly owned and franchise retail outlets. A sophisticated global supply chain moves product from inception, through sourcing to manufacturing, to transportation, distribution centers and finally to stores within markets. 143,000 employees ensure seamless operational efficiency. A global company’s compliment of experiences with disaster is not limited by a singular geography, rather by the totality of its presence and exposure to disparate risk profiles and threats. Under the leadership of Michael Lazcano, the Gap’s Director of Global Business Continuity Services, Corporate BCP (CBCP) anticipates experiences, responds to, and learns from many situations that pose serious risk to employees, operations, and the communities that the organization serves. The shape of the Gap’s Business Continuity Program—its structure—promotes exacting control without impeding regional autonomy and innovation. CBCP’s “hybrid” program consists of 24 autonomous Incident Command Structures (ICS)—each with access to centralized resources. These include policies and standards, an emergency notification system, a BCP Hotline and website tools. Each ICS is fully capable of responding to any situation with confidence that CBCP is always present to render guidance and resources. Under Mr. Lazcano’s direction, CBCP engages yearly tabletop exercises across all locations—including distribution centers. All distribution centers in North America participate in a single yearly tabletop exercise utilizing a “worst-case” disaster scenario. The exercise mimics response by the entire network of distribution centers in North America should one distribution center sustain a disaster that significantly cripples operations. The totality of the exercise tests response capability by the local ICS, adjunct distribution centers, Senior Management, the Corporate ICS, and CBCP. Of the many threats and incidents CBCP faced, certainly the most significant was a fire located at the company’s distribution center in Fishkill, New York. The critical facility—which employs thousands of people and spans millions of square feet—moves inbound merchandise to a great number of the Gap’s brands across the entire retail market located east of the Mississippi. Information Technology reconfigured networks, and the remaining distribution centers prepared for additional responsibilities in servicing Brands and regional markets. So efficient and effective was the totality of the response that not a single employee separated from the company and the impact to markets was limited. Q. Comment on the business continuity plan of Gap Inc. (Explain it in at least 300 words )

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.2SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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Case Study 

Gap Inc. is a well-established Retailer based in San Francisco. Its operations span the world within markets in most every developed country with HQ facilities, wholly owned and franchise retail outlets. A sophisticated global supply chain moves product from inception, through sourcing to manufacturing, to transportation, distribution centers and finally to stores within markets. 143,000 employees ensure seamless operational efficiency.

A global company’s compliment of experiences with disaster is not limited by a singular geography, rather by the totality of its presence and exposure to disparate risk profiles and threats. Under the leadership of Michael Lazcano, the Gap’s Director of Global Business Continuity Services, Corporate BCP (CBCP) anticipates experiences, responds to, and learns from many situations that pose serious risk to employees, operations, and the communities that the organization serves.

The shape of the Gap’s Business Continuity Program—its structure—promotes exacting control without impeding regional autonomy and innovation. CBCP’s “hybrid” program consists of 24 autonomous Incident Command Structures (ICS)—each with access to centralized resources. These include policies and standards, an emergency notification system, a BCP Hotline and website tools. Each ICS is fully capable of responding to any situation with confidence that CBCP is always present to render guidance and resources.

Under Mr. Lazcano’s direction, CBCP engages yearly tabletop exercises across all locations—including distribution centers. All distribution centers in North America participate in a single yearly tabletop exercise utilizing a “worst-case” disaster scenario. The exercise mimics response by the entire network of distribution centers in North America should one distribution center sustain a disaster that significantly cripples operations. The totality of the exercise tests response capability by the local ICS, adjunct distribution centers, Senior Management, the Corporate ICS, and CBCP.

Of the many threats and incidents CBCP faced, certainly the most significant was a fire located at the company’s distribution center in Fishkill, New York. The critical facility—which employs thousands of people and spans millions of square feet—moves inbound merchandise to a great number of the Gap’s brands across the entire retail market located east of the Mississippi.

Information Technology reconfigured networks, and the remaining distribution centers prepared for additional responsibilities in servicing Brands and regional markets. So efficient and effective was the totality of the response that not a single employee separated from the company and the impact to markets was limited.

Q. Comment on the business continuity plan of Gap Inc. (Explain it in at least 300 words )?

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