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Pardon the copy and paste...it was done from adobe acrobat reader...

 

If you think it's wise to wait to begin preparations...think again.

 

 

 

An Analysis of the Potential Impact of the H5N1 Avian Flu Virus

 

- Wholesale and Retail Grocery and Foodservice Industry –

-

August, 2005

 

Food Industry QRT Pandemic Analysis

Page 2 of 38

 

Introduction:

 

This whitepaper was developed by a regional wholesale and

retail food company in an attempt to understand the

ramifications of a catastrophic flu pandemic. A task force of 15

professionals representing all key functional areas was formed

with the assignment of brainstorming this issue and

documenting as many ideas, recommendations and suggestions

as possible.

 

One of the key recommendations of this task force is the

necessity to share this work with the industry. It is crucial that

our competitive instincts be set aside such that all players in

the supply chain work together to keep products and services

flowing throughout such a disaster.

 

In this spirit, we contribute our thinking on this subject. Of

course, every organization will face different issues and

concerns. Nevertheless, we sincerely hope our work can help

other organizations tackle this potentially catastrophic global

disaster.

 

The process used to generate the material that is presented in

this analysis was the following:

 

1. Background information, provided by the University of

Minnesota’s Center for Infectious Disease Research and

Policy (CIDRAP) Department was reviewed by each

participant. This included various articles and an audio

interview.

 

2. The group was split in half. A 3½ brainstorming session

was held with each subgroup. In both meetings, after a

brief review of the background information, the subgroups

focused on specific aspects of the pandemic issue (media,

consumers, employees, government, etc.). Both

subgroups considered every focus topic.

 

3. The results from the subgroups were consolidated into a

draft document.

 

4. The full group met for a final 3½ hour session. The group

reviewed and revised the document. Finally, each

participant “voted” for the recommendations that they

believe are most significant and worthy of action.

 

5. Based on the final meeting, and the votes, this document

was developed.

 

It should be noted that all participants took the assignment to

heart and gave the topic the serious consideration that is

deserved. Sincere appreciation is extended to all who

participated.

 

Below are two sections. The first is an executive summary that

attempts to overview a high level vision of a pandemic, and to

summarize the most significant recommendations of the group.

The second section is the detailed summary of each topic area

(Media, Consumers, Employees, Government, etc.). The group

was encouraged to think freely, and we attempted to document

all ideas. Recommendations and ideas that received the most

“votes” are flagged with a bullet.

 

There are more ideas and recommendations contained in this

document than can be realistically undertaken. However, this

should provide an excellent starting point to develop an action

plan to prepare the company for the potential of a pandemic

disaster.

 

Executive Summary

 

Background:

 

Pandemics have occurred repeatedly throughout history. Few

people alive today can recall the last major pandemic (1918-

1919), and typically regard the potential of such an event as

impossible. This is not the case. In fact, the H5N1 strain of

influenza has the definite potential to mutate into a world class

disaster.

 

What is unique about the next pandemic is the environment in

which it will operate. Unlike all past occurrences, this

pandemic will strike a world that has unprecedented human

mobility, a global just-in-time economy, and 24 hour cable

news network. Coupled with the many shortages that have

been well documented, this could very well turn into the

“perfect storm” pandemic.

 

Once the virus mutates such that it can pass from human to

human, is will spread with stunning speed. This was well

demonstrated during the SARS episode. It is a safe bet that this

will become the story in the media. The subsequent 2 or 3

month period will be highly chaotic as everyone reacts and

almost certainly overreacts. After this initial panic period, a

new reality will set in is as we all learn how to cope with life

during a major pandemic. With time, normalcy will inevitably

return.

 

Vision:

 

The ramifications of a severe global pandemic are considerable.

Consumers will resist leaving the home. Grocers will see their

business shift to fewer visits with increased basket size.

Demand for Internet Shopping, self checkout and home delivery

will spike. Consumer demand will also shift away from

perishable products towards prepackaged goods. Poultry and

pork demand should tank. Consumers may also shy away from

imported product and have greater interest in country-of-origin

information.

 

Independent grocers will face the same issues as large chains,

but will not have adequate resources at their disposal. In many

cases, it is doubtful that an independent store will be able to

survive the death or illness of a key family member. We should

expect that a high number of independent grocers will look to

their key suppliers for help.

 

Restaurants should expect to see their business evaporate.

Many food service customers will find it difficult to survive.

The receivable balances of our foodservice Customers will

become a big issue. On the flip side, emergency health care

facilities will pop up in buildings that will be lacking in food

preparation facilities.

 

Employee response will be inconsistent, but our company will

need to find a way to operate with significant staff shortages.

Many part time and lower pay employees will abandon their

jobs as they perceive the risk being greater than the

compensation. We will face shortages in some positions with

surpluses in others. The demands placed on HR will be large

as many policies and practices become instantly obsolete.

 

On the vendor side, disruptions to the supply chain and product

shortages will become the norm. Non-product vendors will

also struggle to provide their services. Initially, fuel shortages

are probable. With a little time, fuel costs could actually drop

due to the pandemic’s impact on China.

 

At a macro level, we should expect to see Wall Street tank.

Likewise, some insurance companies could be in trouble.

Banking institutions will seek to limit their risk.

 

Key Recommendations:

 

Establish a set of “trigger points” that we can invoke as

the pandemic takes hold. Each trigger point needs to have

a set of well defined check lists with clear cut

responsibilities. This will help us coordinate key activities

throughout all business units and ensure well managed

execution of our emergency plans.

 

We should encourage industry groups such as FMI, IFDA

and NAW to begin preparing for this potential crisis. In

addition to helping our industry prepare, these groups

need to represent the industry in Washington to implement

a number of actions that will keep the food supply chain

working during a pandemic.

 

We should immediately begin working with our Health

Plan Administrator to develop emergency health care

procedures.

 

Analyze our product lists to determine likely demand

shifts during a pandemic. Identify “core” items and create

emergency purchase orders that can be executed when

the appropriate trigger point is invoked. Identify emergency substitution rules that can be implemented to keep product on the shelf. Identify items that should be offered in case quantities and identify foodservice product that should be sold at retail. To the extent possible, negotiate with vendors now to obtain appropriate

commitments. Also, develop backup strategies to meet product shortages.

 

Prepare a media point person for the H5N1 pandemic.

 

Implement a company-wide analysis of “essential” and

“nonessential” functions during a pandemic. Develop

plans to appropriately shift resources. In preparation,

consider appropriate cross-training and education that is

appropriate.

 

Develop an emergency set of employee procedures and

policies that can be used during a pandemic.

 

Develop emergency communications mechanisms that will

be needed during a pandemic. This includes

communications to employees, customers, and consumers.

 

Design and develop an employee database that will be

needed during the pandemic to track key information

about employees and their families.

 

Use our wholesale division’s Food Shows to begin

educating customers about the H5N1 issue.

 

Develop a plan to rapidly scale up Internet shopping

operations.

 

Research the potential to use the excess capacity that will

be available at restaurants to serve the requirements of

emergency health care facilities that will need to be

feeding people.

 

Develop an emergency corporate chain of command so

that no matter which executives become ill, leadership is

well understood.

 

Develop essential contacts and relationships with

governmental agencies. Understand and document which

agencies will be making which decisions.

 

Inform the company’s Board of Directors about this issue.

Provide the board with status updates on the progress of

preparation activities.

 

Summary:

 

Our corporate Emergency Response Team should review and

discuss these key recommendations, as well as the detailed

information that follows and reach consensus on which

recommendations deserve attention. From this, it makes sense

to develop a project plan and assign the necessary resources to

make it happen. Should the pandemic strike, it is very clear we

will look back on this preparation work as well worth the effort.

 

MEDIA

 

Vision:

 

In the past 300 years there have been 10 documented

pandemics. However, the H5N1 threat represents the first

pandemic since the advent of the 24 x 7 cable news network.

There is no doubt it will result in an unparalleled feeding frenzy

as the fatalities start to climb.

 

The result will be consumer panic. We will need to be prepared

for both the reality of the situation as well as many false

perceptions based on nonstop media hype. It is very important

that we manage the media very well.

 

Recommendations:

 

Prepare a media point person who is well versed with the

H5N1 issue.

 

Take immediate steps to encourage industry groups (FMI,

IFDA, etc.) to become prepared to help manage the media.

 

Consider the dangers of how we react to the pandemic if

our competitors are slow to react. Take steps to ensure

that any protective steps we implement (masks, gloves,

etc.) aren’t perceived by consumers to reflect that our

retail stores are more dangerous places to shop than other

chains that respond slowly to the risk. Ideally, consistency

between competitors should be encouraged.

 

During the pandemic, establish a daily process to stay

abreast of most recent develops with trusted sources,

such as CIDRAP.

 

Re-emphasize to all employees the procedure to follow

when approached by the media.

 

Communicate to non-employees (DSD vendors, guards,

etc.) who may be approached by the media that they must

not speak on behalf of our company.

 

Take a proactive role in providing the media with good

information about the food supply and food safety.

 

Although it is not our responsibility to educate the media,

we should set up a mechanism to ensure that any

information that is passed to the media is as accurate as

possible.

 

CONSUMERS

 

Vision:

 

Fed by massive media hype, we should anticipate overreaction

and irrational behavior, especially in the first two or three

months. Initially there will be overall panic. Thereafter,

consumers will adjust to the new realities of life during a

pandemic.

 

During the initial months we should anticipate a number of

consumer behavioral shifts. Some of the key changes will

include:

 

Avoidance of dining out

 

Consolidate trips to the store by purchasing much larger

quantities of product in fewer visits

 

Preference towards non-perishable and prepackaged

goods

 

Preference towards buying in bulk

 

Desire to buy case quantities of certain items

 

Spike in demand for certain HBC/anti-bacterial products

(whether or not they are effective)

 

 

- Demand for masks and gloves

 

Strong demand for Internet Shopping

Strong interest in home delivery

 

Strong demand for self-checkout

 

Avoidance of non-essential retail stores

 

Some consumers will attempt to stockpile product (similar

to Y2K experience)

 

Strong desire to get accurate information

 

Demand to see employees wearing masks and gloves

 

Demand to see anti-bacterial wipes at check-out (whether

or not they are effective)

 

Demand for country-of-origin information throughout the

Store

 

Avoidance of products made outside the United States

 

Demand for “USA Only” sections of the store

 

Demand that employees who survived the virus, and are

“safe”, to be easily identifiable

 

As schools shut down, there will be a need for families to

provide lunches for their children

 

Note that some consumers may conclude that certain

large national chains may pose additional health risks

because they import many products from Southeast Asia.

 

Recommendations:

 

Prepare to ramp up Internet Shopping at all stores.

 

Prepare to scale up Internet Shopping operations. This

includes consideration for both people and technology.

 

Note that less variety in the store may simplify the picking

of orders.

 

Develop a detailed plan that identifies the product that

should be carried during the pandemic. This should

include more pre-packaged goods and case quantity

items.

 

Prepare to ramp up self check out.

 

Consider how current lanes could be modified to isolate

the Consumer from the cashier.

 

Develop a program that would support an Internet

Shopping program for independent grocers.

 

It may be necessary to support an Internet-Only model of

operation in which consumers place orders via the

Internet and drive to the retail store for pickup.

 

Identify partners who can provide home delivery options

as an extension to Internet Shopping.

 

It may be necessary to limit purchases of product.

 

It may be necessary to reduce hours of store operation.

 

Develop a plan to identify which foodservice should be

moved to retail to meet the need for bulk buying.

 

With any noticeable action step we implement, consider

the need to educate the consumer on why the change is

appropriate.

 

Provide an up-to-date message for the consumer that

answers the critical questions (for example, “What is your

store doing to protect me?”).

 

Explore the potential impact as different types of people

take on shopping duties (husbands shopping for sick

wives, shift to shoppers that are not in the target 18-40

age group, etc.).

 

Explore the possibility of working with other retail chains

to provide the most accurate and consistent information to

the consumer.

 

Coordinate with the teams within our company that are

dealing with Country-of-Origin (COL) labeling so that

they are aware that consumers may have a strong desire

to get COL information during a pandemic. Note that we

may have a greater need to have ready access to COL

information.

 

EMPLOYEES

 

Vision:

 

It is estimated that over 280 employees per 1,000 will become

ill with the virus, and more than 28 will die. Approximately 40

immediate family members of employees will perish (per 1,000

employees)

 

Employees will face many needs to tend to themselves and

their families. In addition to the illness itself, other factors

such as school closings will place additional demands and

stress on many employees.

 

Although this will occur over a 12-18 month period, there will

be peaks and it will probably be inconsistent. For planning

purposes, we should assume that, at times, some departments

may need to operate at a 50% staffing level.

 

We should expect to be particularly hard hit in part-time and

lower pay positions. For example, it is reasonable to conclude

that many two-income households will decide that the risk of

exposure outweighs the incremental income. This could hit

retail particularly hard.

 

Employees will face a natural conflict between the need to earn

money and the need to protect themselves and their family. It

is reasonable to conclude that employees will react to this in a

wide variety of ways:

 

Some employees will refuse to show up.

 

Some employees will want to come to work and remain

at work as a way to earn money, protect their family

from exposure and to serve the company.

 

Some employees will want to work even though they

exhibit symptoms of the flu.

 

Some employees will exploit the situation and use the

flu as a reason to avoid showing up.

 

Some employees will refuse to seek health care for fear

of contracting the flu at the doctor’s office.

 

Some employees will expect the company to provide

them with food.

 

Some employees will refuse to drive into certain

geographies hard hit by the virus.

 

Recommendations:

 

Current employee policies are very likely to instantly

become obsolete during a pandemic. A thorough review

of employee issues and the preparation of an emergency

set of procedures must be developed in advance of a

pandemic.

 

In advance of the pandemic, implement a corporate wide

program to have each department determine which

functions are critical during the pandemic and which

functions are nonessential.

 

Identify critical functions which are at risk if a significant

percentage of those employees who know how to perform

those functions become ill at the same time. In particular,

look for areas in which we are only 2-deep or 3-deep.

Implement appropriate cross-training programs in

advance of the pandemic. (Note: This has benefits to the

company that are unrelated to a pandemic.)

 

Develop a “best practices” plan so that employees

minimize the odds of spreading the flu. This could include

such things as:

 

o Avoid face-to-face discussions

o Communicate via email and voice only

o Hold meetings via conference calling

o Implement Instant Messaging (IM) as a real time

communications alternative

 

In advance of the pandemic, identify jobs that will likely

face extreme shortages (e.g. truck drivers) and those jobs

that will likely face extreme surpluses (e.g. foodservice

selectors).

 

Develop an emergency plan for reallocating employees to

other functions where they are needed. A high level,

macro plan is required that looks across the entire

corporate enterprise.

 

Develop a plan specific to drivers. Since there is already

a driver shortage, it is hard to predict how this will play

out. It probably makes sense to consider the options

(shift foodservice drivers to wholesale grocery delivery,

partner with organizations that will have surplus drivers,

adjust driver pay if necessary). Close attention must be

given to the risk of other organizations attempting to lure

away our drivers.

 

Develop a plan for N95 masks. Determine how many we

should stockpile and who should get them?

 

Develop a plan for communicating with employees during

the pandemic. This needs to include communicating to

employees both at work and at home. Consider how the

internet could be used to simplify this task.

 

There will be the strong need to build an employee

database for tracking critical information relating to the

flu. It may be appropriate to design and build this

database in advance of the pandemic. During a pandemic,

it will be crucial to know which employees are currently

sick, which have survived and are immune, which have

lost family members, etc.

 

Start a dialog with our healthcare administrator

immediately to develop emergency plans and procedures.

This should include careful attention to situations in which

it is not possible for employees to get the healthcare they

need.

 

Many aspects of a pandemic will result in significant

employee-related costs. This includes direct medical

costs, paid sick time, meeting special employee needs,

etc. An examination of all of these costs with discussion

about how the organization can sustain them is

appropriate.

 

For jobs that are likely to be in short supply (cashiers, lift

operators, drivers, etc.) examine the opportunity to have

emergency backup. This may be accomplished either

through cross-training or partnering with other

organizations that will likely have a surplus supply of

skilled labor. Note that in some cases, such as self check

out, technology can replace the need for people.

 

Develop a plan to shift appropriate jobs to home offices

and the necessary procedures to perform business

process in such a distributed fashion. For those jobs that

can be adequately performed from home, identify

necessary hardware, software, and connectivity

requirements to support the plan. This should also

consider what investments need to be made in advance of

the pandemic (PC’s, broadband access, concentrators,

etc.).

 

Review and revise procedures for handling voice selection

units to prevent risk of exposure. This includes the

proper procedure for reassigning units due to turnover or

sickness. Note that voice selection units used in the

freezer require special attention.

 

Modify cafeteria practices, as appropriate, to minimize the

chance of spreading the virus.

 

In advance of a pandemic, implement 100% direct deposit.

It will be helpful to eliminate the distribution and handling

of paychecks.

 

Currently, most departments are assigned to contiguous

office space. Consider the value of moving people around

so that a part of a building that is hard hit by the virus

would not risk everyone in a single department at the

same time.

 

Based on potential employee reallocation of duties,

identify and provide incremental training such that these

employees will be prepared for their emergency role.

 

As appropriate, have computer-based-training (CBT)

readily available to simplify the task of assigning

employees to new tasks.

 

In advance of a pandemic, influence the DOT, probably

through FMI, to develop emergency regulations that would

relax certain rules (driver certifications, hour limitations,

etc.) to increase freight bandwidth.

 

Scan the workforce for potential emergency drivers.

Numerous employees previously held Class C licenses.

We need to develop plans to enable these employees to

serve as drivers.

Develop a plan to shift the foodservice fleet, likely to be

underutilized, to grocery distribution.

 

Develop a plan to staff HR. Many HR functions will be

under extreme pressure. Incremental resources to handle

the work will likely be needed. This plan should include

halting all non-essential HR functions.

 

Consider whether dedicated physicians or physicianassistants

would be appropriate for the company.

 

Develop a plan for implementing an emergency call center

that employees can contact for information and special

needs.

 

Consider the need to begin familiarizing employees with

the pandemic issue and provide the appropriate message.

This needs to weigh the value of providing insight into the

potential issue against the fear of needlessly alarming

employees. Some articles in the company newspaper may

be appropriate.

 

Communicate to employees that in a pandemic situation,

there is the potential for shifting of duties and that there is

the expectation that everyone will pull together to get

through the crisis.

 

Influence Government thinking, probably through FMI and

IFDA, to consider the protection of food supply workers to

be a priority. Foods supply workers need to be

appropriately high on the priority list for items in short

supply such as masks and vaccines.

 

In the event of major fuel shortages caused by the

interruption to international trade, develop a plan to help

employees get to work.

 

Develop a plan for dealing with excess employees and

hourly workers who will need special help.

 

Consider the idea of having special “employee only” hours

at our retail stores to ensure that employees have access

to necessities. This might also be necessary to encourage

key employees to continue to work.

 

Develop a plan to provide appropriate additional security

for employees. For example, drivers and store personnel

could be placed at risk during the pandemic.

 

Determine how the Short Term Disability procedure will

need to be modified.

 

Examine the legal ramifications of a pandemic and

implement appropriate steps to minimize exposure. For

example, if we send a driver into a geography hard hit by

the virus, do we open ourselves up for litigation?

 

HUMAN RESOURCES

 

Vision:

 

Based on the numerous employee issues discussed above, it is

reasonable to conclude that the HR Department will get

slammed with incremental work. Some HR functions can be

suspended (example: benefits statements) but the net will

undoubtedly be a significantly increased workload.

 

Recommendations:

 

Develop an emergency set of procedures that can be used

in a crisis. This should include:

 

o Streamlined hiring policies

o Short term disability

o Time off policy

o Emergency employee assistance policy

o Medical policy

o Death in family policy

o Miscellaneous crisis policies

o Paycheck distribution

 

Establish an Employee Call Center

 

Identify a source for incremental HR resources. Some

may be allocated internally. In some cases, outside

resources may be necessary.

 

WAREHOUSE AND TRANSPORTATION

 

Vision:

 

Warehouse and Transportation are naturally the primary value

that our company brings to the supply chain. Despite the many

disruptions that the pandemic will bring, it is imperative that we

figure out how to keep moving cases.

 

Recommendations:

 

Coordinate with the buying departments to know about

plans to “bulk up” on core items so that facilities can be

secured for emergency storage. It is important that the

core items be identified well in advance of the pandemic.

 

Increase security for the warehouse and vehicles.

Develop emergency guidelines for lumpers to lessen the

chance of spreading the virus.

 

Develop emergency check-in and receiving procedures to

minimize human contact between drivers and warehouse

personnel.

 

Develop emergency delivery procedures to minimize

human contact.

 

Develop alternative routing plans that reduce the number

of deliveries.

 

Develop plans to minimize the potential for a fuel shortage

which will be especially likely during the initial panic

period.

 

Develop policies to deal with drivers that refuse routes

into certain geographies.

 

Investigate the potential to secure housing for critical

employees that prefer to stay away from their families.

 

Develop cooperative arrangements with other distributors

to keep the food supply chain functioning.

 

Develop backup plans in the event we cannot ship.

 

Consider using excess distribution capacity to help in

other emergency areas (for example, medical supplies).

 

Develop a relationship with organizations such as the Red

Cross who may have need for our surplus product and

whom we may be able to assist as they carry out their

duties.

 

Since machine parts will become in short supply, consider

appropriate plans to have adequate inventory of critical

parts to keep the fleet and other equipment running.

 

Develop relaxed product substitutions rules such that

product continues to flow to the shelf.

 

PRODUCT SUPPLIERS

 

Vision:

 

Upstream manufacturers and vendors will certainly be facing

the same set of issues. Since it is reasonable to assume that

many of our vendors have yet to address the H5N1 issue, we

should be willing to provide assistance to them.

 

There will be significant disruptions to their production

capabilities as well as their distribution network. It should be

noted that suppliers will face shortages from their suppliers as

well. Even obscure shortages, such as packaging material, will

negatively impact the suppliers’ ability to provide product.

All distributors and chains, including ourselves, will attempt to

leverage relationships with key product vendors. Obviously,

there is a clear risk that Tier 1 national chains would receive a

disproportionate amount of scarce product. We should also

expect deals and trade funds to quickly disappear.

 

Recommendations:

 

__________Identify core items that will be critical to the food supply

during a pandemic.

 

Develop a pandemic trigger point and procedure. When

the trigger point is activated, have a ready set of purchase

orders for the core items ready for instant release.

 

Working through organizations such as FMI and NAW,

take appropriate steps to help educate product vendors on

the pandemic issue.

 

Negotiate with key vendors, as appropriate, to attempt to

gain reasonable commitments.

 

When the trigger point hits, have procedures developed to

greatly restrict the amount of product that a customer can

draw from the warehouse.

 

Identify alternative/backup suppliers for core items, and

develop a plan to shift demand to these suppliers.

 

Develop emergency product substitution rules.

 

Recognizing that international and national distribution

may be disrupted, perform a geographic vendor analysis

to examine ways we could shift to a more local or regional

supply chain.

 

Influence the Government, probably through FMI, to

ensure that large national chains do not receive an undue

amount of scarce product.

 

Leverage our relationship with key vendors to jointly plan

for smooth distribution during a pandemic.

 

Consider a potential consumer avoidance of product

produced outside of the United States.

 

Consider any responsibility we may have to key vendors

that are struggling for survival. For example, demand for

chicken may plunge. Do we watch key trading partners

fold or is there anything we can do to help them?

 

Develop a plan to coordinate backhaul strategies to help

address shortages. Consider alternative pickup locations

that may be used in the event certain locations are more

severely impacted.

 

NON-PRODUCT SUPPLIERS

 

Vision:

 

All suppliers will face disruptions to their ability to service our

company. In the case of non-product suppliers, the risk is that

we depend on a very long list of vendors, and are likely to

encounter unpleasant surprises unless this is carefully

researched.

 

Recommendations:

 

Each department needs to identify the critical vendors and

utilities that could impact our ability to function. We need

to develop appropriate contingency plans.

 

Research other types of disasters. For example, talking

with organizations that were hard hit by hurricanes Florida

and the Gulf Coast might uncover some subtle, yet critical

vulnerabilities.

 

Examine the unthinkable. Just like no one ever considered

that planes would be used to fly into buildings until 9/11,

what unforeseen situations will a pandemic bring? For

example, what if insurance companies fail? What if the

U.S. Mail Service is disrupted?

 

SECURITY

 

Vision:

 

As the public panics and as shortages develop, the need for

security will increase.

 

Recommendations:

 

During a pandemic, increase warehouse security measures.

 

Develop emergency procedures to protect vulnerable

employees and assets. This includes store personnel,

drivers, trailers, etc. Some ideas include:

 

Ο Is it possible to make it less obvious that our rolling

stock is hauling food?

Ο Consider taking drivers out of uniform

Ο Develop a plan to avoid standard routes

 

During a pandemic, increase store security measures

 

Advise independent grocers of the need for additional

Security

 

RETAIL STORES

 

Vision:

 

Consumer and employee reactions will have a strong impact on

retail. Both groups will place new demands on the retail store.

Recommendations:

 

Develop plans to deal with consumer demands to see

special precautions (masks, gloves, cleaning procedures,

etc.).

 

Identify critical corporate functions and services which

would create store vulnerabilities if disrupted. Develop

appropriate plans to minimize these risks.

 

Develop plans to deal with product and labor shortages.

This may include restricting store hours. In some cases,

it may be necessary to consolidate and close some stores.

 

Develop emergency plans to minimize unnecessary vendor

time on the sales floor.

 

Develop emergency policies to minimize unnecessary

retail visits from corporate personnel. This would include

restricting repair and maintenance of equipment to only

essential work.

 

Revise receiving procedures to avoid all human contact

between the driver and the receiving personnel.

 

Consider shifting store duties such that more work is

performed during hours that the store is closed to

minimize human contact between consumers and

employees.

 

Consider the impact of how the store will run as the

consumer shifts preferences towards self check-out and

Internet Shopping.

 

Consider how we can meet a consumer demand for home

delivery. Can we partner with other organizations to meet

this need?

 

Develop a cash handling strategy to deal with the potential

that our armored security service is disrupted.

Develop potential store consolidation plans. This needs to

involve the wholesale company’s dispatch personnel.

 

Develop a mechanism to permit dispatch to closely

coordinate with retail stores as routes and hours of

operation change.

 

INDEPENDENT GROCERS

 

Vision:

 

Life will be especially tough for the independent grocer. They

will be facing most all of the same issues impacting our

organization with far less resources at their disposal. In many

cases, illness (or death) to one or two key individuals would

deliver a knock out punch to the store.

 

We should anticipate that independent grocers will look to our

wholesale grocery company to provide help, most likely in the

form of special A/R terms, loans and personnel to help run the

store. Unfortunately, we can assume that some independent

grocers will attempt to use the crisis as an excuse to defer

their payments.

 

We should anticipate the independent grocers will quickly work

to try to establish contingency suppliers to protect themselves

against disruptions with our service to them.

 

Recommendations:

 

Use our Food Show as a forum to begin educating the

independent grocers about the pandemic. Perhaps a well

known authority could be a guest speaker at such an event

or at FMI.

 

During a pandemic, there will be the need to have an

effective communications mechanism between our

wholesale grocery company and the independent grocer.

We need to consider how this should work (e-mail,

extranet, conference calling, instant messaging, etc.) and

set up the mechanism now.

 

Establish a primary contact person that the independent

grocer can access for all pandemic related issues.

 

During the pandemic, we should pay even more attention

to A/R issues than normal. We should expect a number of

independent grocers to fail.

 

A pandemic will raise a number of serious issues such as:

Will we give priority of scarce product to our own retail

stores? How much help should we (and can we afford to)

give the Independents? In a pinch, are we willing to run

some stores for these customers? Should we refuse to

take on new Customers during the crisis? It would be

helpful to begin thinking about these tough issues in

advance of a crisis.

 

To the extent possible, develop emergency plans and

encourage the independent grocers to sign up for these

programs. For example, during a pandemic, receiving

procedures should be revised to eliminate human contact

and delays. Both parties should agree to suspend all

counting practices and the need for signing paperwork.

 

Develop relaxed product substitutions rules such that

product continues to flow to the shelf. Emergency rules

need to be communicated to the grocers.

 

We will need to make sure the independent grocer is

aware of all laws concerning price gauging as well as

emerging regulations as the pandemic unfolds.

 

Develop a Internet Shopping model for Independent

Grocers .

 

FOOD SERVICE CUSTOMERS

 

Vision:

 

Many typical food service customers will he devastated by a

pandemic as consumers avoid leaving the home.

Establishments that do home delivery may be the exception.

The initial two or three month panic at the onset of the

pandemic will be more than many operators will be able to

sustain.

 

On the other hand, health care providers will have increased

demand for food products to feed sick people. Many ad hoc

health care facilities (schools, auditoriums, etc.) will be created

and will have the need and possibly no facilities to feed people.

There may be the opportunity to use the excess food

preparation capacity in restaurants to service these ad hoc

health care facilities. Our retail delis could also help provide

food to these facilities.

 

In previous emergencies, large restaurant chains have actually

provided free food to consumers to help them deal with the

crisis.

 

Recommendations:

 

Coordinate a plan to keep the restaurant customers in

business by using their excess capacity to serve the

increased demand for health care meals. Consider the

issues that will result in the preparation and distribution of

meals.

 

Identify foodservice items which could be sold through our

grocery distribution supply chain. Develop a plan to move

excess foodservice product to retail.

 

Develop an emergency plan to closely monitor the A/R

status of all customers.

 

Consider developing an emergency plan to reduce the

terms to customers.

 

Consider educating customers on the risk of a pandemic at

Foodservice Food Shows. Perhaps a well known authority

could be a guest speaker.

 

- Establish contacts with churches which may need to

provide a distribution point for getting food supplies to

consumers.

 

GOVERNMENT

 

Vision:

 

In a pandemic situation, the federal and state governmental

agencies will have to take control. Typically slow-moving

bureaucracies will create conflicts with the demand to take

some kind of knee jerk actions. At least initially, the result will

probably be highly inconsistent. We should expect to see well

intended but poorly conceived regulations only adding to the

level of confusion. With a little time, the agencies will get their

act together, but the first few months could be wild.

 

Recommendations:

 

Identify the key contacts we will need within all levels of

government and start building relationships now. It is

critical to try to understand which agencies will be making

which decisions. This needs to be documented.

 

Work with the government and others in the industry to

begin to develop the necessary plans to deal with a

pandemic.

 

Considering the potential for the federal government to

freeze pricing, we should consider having a trigger point

action to set reasonable prices that recognize the likely

evaporation of all deal money and the increased costs of

operating in a crisis environment. The goal should be

fully focused on being fair and ethical.

 

Lobby the government, generally through FMI, to develop

emergency procedures that would let the food industry

continue to function (relaxed DOT regulations, priority of

scarce medical supplies to food supply workers, etc.)

 

Identify the key contacts/agencies in local government in

each county who make decisions regarding schools,

hospitals, etc.

 

INFORMATION SYSTEMS

 

Vision:

 

The key role for the I/S Department will be to keep the critical

applications and infrastructure running and to support the

business units in dealing with the crisis.

 

Recommendations:

 

When the trigger point is reached, put an immediate

freeze on virtually all changes. Since most outages are

caused by change, only the most critical changes should

be permitted.

 

Prepare for the crisis by developing necessary

applications and capabilities in advance of a pandemic.

Work with the business units to determine these

requirements. This would likely include tracking

databases, communication mechanisms, etc.

 

FINANCE

 

Vision:

 

The global economy will be significantly disrupted. Wall Street

will tank. Banks will seek to minimize their risks.

 

Recommendations:

Develop a plan to maintain or increase our borrowing

capacity in order to survive the crisis.

 

Develop a strategy to deal with potential disruptions to the

credit/debit networks.

 

Consider developing a plan that, at the trigger point,

moves pension funds into more appropriate investments.

 

Based on the potential for a pandemic to strike, any

renegotiations of our revolver should be undertaken well

in advance of the expiration of the current arrangement.

 

Review the various insurance companies that we deal

with, and consider the impact should the insurance

company fold.

 

LEGAL

 

Vision:

 

During the initial panic, it is likely the country will pull together

to deal with the crisis. As things begin to settle down, there

will certainly be some attempts to exploit the situation.

 

Recommendations:

 

Consider potential lawsuits that would result from our

emergency actions and implement reasonable steps to

protect the company against litigation.

 

Monitor vendor compliance against established contracts.

 

Develop a backup plan for our single legal resource.

 

CORPORATE MANAGEMENT

 

Vision:

 

The Senior Management Team and Emergency Response Team

will be vital in leading the business units through a pandemic

crisis. A number of tough decisions and tradeoffs will need to

be made from the top. In some cases, our desire to do the right

thing will need to be reconciled with the requirement to be

fiscally responsible.

 

Recommendations:

 

The Emergency Response Team should review the many

recommendations and ideas contained within this

document to reach a consensus about the vision and steps

that should be undertaken.

 

Develop the appropriate set of trigger points. This should

probably involve outside expertise both in the planning

and invocation of each trigger point.

 

For each trigger point, develop the appropriate “check

lists” to ensure that plans are well executed and

coordinated.

 

Inform the Board of Directors about the potential risk of a

pandemic and periodically advise them of the steps that

are being implemented to protect the organization.

 

During a pandemic, implement policies that minimize the

chance that all members of Senior Management are

unavailable at the same time. For example, avoid having

members of the Senior Management Team in the same

room.

 

Document a precise chain of command sequence such

that, no matter how many people get sick, it is clear to

everyone who is ultimately running the company until the

normal leaders return to duty.

 

Develop a plan that addresses how the company recovers

after the crisis period is finally over.

 

Implement a process to oversee the implementation of the

approved actions that need to be undertaken in

preparation for a pandemic.

 

Provide guidelines to the company on appropriate

behaviors during the crisis. For example, the need to

cooperate with the competitors in the interest of public

safety should override the normal goal of gaining a

competitive advantage. Decision makers will want to

know how to properly think about such issues.

 

It is vital that any information we give to consumers,

customers, suppliers or employees must be of the highest

possible quality. The company should set up a QA

process to double check any communiqué for accuracy.

They should also do everything possible to have the best

information at our disposal.

 

Consider unlikely partnerships that would benefit the

public. For example, could we partner with a major

drugstore chain in ways to benefit public health?

 

It is envisioned that communities will have certain

expectations of us. We should anticipate these demands

and consider what is possible.

 

During the crisis, employees will want more visibility from

the Senior Management Team. We need to develop a

communications mechanism to permit frequent

communiqués from Senior Management.

 

 

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Very well thought out, now to get the managers to read it and not just file it.

We have to make sure that our local suppliers are aware that it is essential to not only read but act on these ideas.

How do we do that?

 

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Lois, maybe we could print a copy of this and give it to our local grocery store manager. Then pray hard.

 

Wow Darlene, you found an interesting goldmine headsup here. Do you have a link for the source? It’s an excellent read!

 

All we have to do is scan through their list of "changes to consumer behavioral shifts” to see what we really need to have on hand for this. I noticed one point listed is the “strong desire to get accurate information.” That’s where the handbook here could come in useful, or at least the part about pandemics. Also, if anyone has time to print out an overview of what needs to be done ahead of time and stick it in people’s mailboxes ahead of time, it might help some get more of a headsup early on. It will be too little too late for sure, but better than nothing. The government site has some good stuff, but I’m not sure it’s indepth enough.

 

It seems to me developing a sense of community right now would be wise. Of course many of us, myself included, live in neighborhoods where people are living in Lala Land and lack moral integrity.....so how to develop "community" with people like that is beyond my scope of imagination.

 

The biggest problem as I see it is taking the risk of letting neighbors know "someone" in the area is actually preparing for this. If something should happen they might be looking and trying to figure out "who" it is. Our biggest problem today is that so many people in our neighborhoods lack character and integrity. The Great Depression saw its share of evil people, but most were decent folks. Back then men boarded trains to anywhere to find work. Nowadays men live in government provided tents and complain when the free rent ends.

 

This places Christians who have prepared in a very precarious position. I am sure most of us want to help others in any way we can, but it's hard helping someone who does not help him or herself. This Bird Flu has been in the media for a while now. It's not like people don't know something big may be coming.

 

I find it interesting that (in this piece Darlene shared) they are anticipating people screaming for items made USA only. Could it be possible that, should this pandemic hit, many Americans wake up from their politically correct slumber? I know areas like mine where illegals are flooding in we’re already at risk for some types of diseases.

 

Even with all the efforts to keep the flu from spreading the hard reality is that the virus lives happily on both hard and soft surfaces for a long time. So even if people take precautions like having someone else deliver food to their home, the risk is there. Not only that but can you imagine a truck loaded with food getting from point A to B without being mobbed by anxious people?

 

Imagine something as simple as handling cash when it could be contaminated with the virus?

 

Much of what is recommended here requires a lot of time and manpower to put into place. Businesses are much in the same position we are here on this board. The question is: How do I get all this done and still do all my regular daily jobs well? Whoever put this paper together understands that people will already be stretched to the outer limits in trying to take care of their own families, let alone concern themselves with keeping the food supply chain operational for the community at large. They expect staffing to be reduced to possibly 50% workforce. Can you imagine?

 

Our economic system is like dominoes in that everything is inter-related. If one system falls it affects the others.

 

This was particularly interesting to me:

 

 

Employees will face a natural conflict between the need to earn

money and the need to protect themselves and their family. It

is reasonable to conclude that employees will react to this in a

wide variety of ways:

 

Some employees will refuse to show up.

 

Some employees will want to come to work and remain

at work as a way to earn money, protect their family

from exposure and to serve the company.

 

Some employees will want to work even though they

exhibit symptoms of the flu.

 

Some employees will exploit the situation and use the

flu as a reason to avoid showing up.

 

Some employees will refuse to seek health care for fear

of contracting the flu at the doctor’s office.

 

Some employees will expect the company to provide

them with food.

 

Some employees will refuse to drive into certain

geographies hard hit by the virus.

 

 

The bottom line is that, outside of allout nuclear war, this one pandemic could collapse our economy and create havoc like we’ve not seen before. What happened during Katrina would look like a picnic.

 

What really concerns me the most about this report is that when you read between the lines there seems to be an attitude of “what can we do to take care of our employees.” While that’s a noble thought the best thing any company or the government can do is to place the responsibility for survival squarely on the shoulders of the people.

 

Today thousands of people housed in hotels since Katrina hit will be told to move on. There is a limit to what the government can provide afterall. I’ve seen news reports where people are complaining about having to leave their government-provided tents and hotel rooms. I understand it’s never easy to move someplace outside of where one grew up, but special circumstances call for special acts of courage. And most of these people surely could have taken shelter in other cities and found some kind of work by now.

 

This attitude of looking to the government or businesses to bail us out is one of our greatest sicknesses. It won’t bode well during a flu pandemic.

 

While it is encouraging seeing some in the food industry attempt to grapple with hardships this pandemic might create it is frightening seeing one more bureaucracy attempt to deal with a problem that cannot be handled with red tape.

 

It seems for certain that a major pandemic is coming sometime within the next 15 years. The best we can hope for is that it happens closer to year 2020 and that by that time all this bureaucratic confusion can be worked out so it actually works when trouble comes.

 

Maybe some people who normally might not take any of this seriously will do so once they learn that their company is concerned. If there is enough time left before a pandemic hits then the plans these companies are making will be helpful.

 

Darlene, this is a goldmine find and I appreciate your sharing it. I’ll pass it along to my dh. He could use a good scare while he’s suffering with the flu right now.

 

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At the risk of angering someone, I'd like to point out something...

 

Quote:
Also, if anyone has time to print out an overview of what needs to be done ahead of time and stick it in people’s mailboxes ahead of time, it might help some get more of a headsup early on.

 

It is a violation of Federal law to place anything other than US Mail in anyone's mailbox. If you are seen by someone who doesn't want to hear about these possibilities, they can, and likely will, attempt to have you arrested. I have heard horror stories of threats and complaints and police involvement over flyers or brochures placed in mailboxes around here.

 

Sorry for going off topic, just thought it neede to be said.

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Nana said: "At risk of angering someone, I'd like to point out something..."

 

Nana, your comment doesn't anger me at all. Thanks for clarifying my statement. I appreciate your posts here and your knowledge.

 

Thanks for the link, Darlene, and I'm already beginning to send this information out. The amount of thought that went into it is pretty impressive.

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Teaberry, I wasn't talking about you... I have said things on this board lately that seem to get under the skin of other people, and I'm just trying to keep things on an even keel, if possible.

 

As a matter of fact, I wasn't talking about anyone in particular. I was just stating the fact that although I didn't want anyone to be upset, it just might happen. I didn't imply anything.

 

I've been here for many years, but it seems that my comments are at times lately, not welcome or appreciated. You certainly made my point.

 

Maybe it's just time for me to move on...

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SWAT!

 

You just hush nana...you ain't going no where otherwise i"m gonna hafta come out to Washington and that's too far to drive and I hate airplanes and I don't do buses or trains...lol

 

If ya can't put it in their mailbox, there's always a million ways to get information to people.

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Maybe the more obvious way to get the word out, as they themselves suggested, is to bombard the news media with suggestions that it is imperative that they read this info and get the word out, that there are those in business that are trying to get the public up to speed, while not causing a panic.

There are those, like Geri Guidetti, who are willing to work with them in a calm deliberate way to inform and educate the public.

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Lois, Geri Guidetti is doing an amazing job of getting good factual information out. I was just on her site this morning catching up on the latest. Did you or anyone else here get a chance to listen to her interview with Wesley Rawles? Since I've the garden-variety flu and am mostly resting today I plan on listening to that interview again while I lie down. They really go into the nitty gritty.

 

I am sure someone here has already thought to post the following links here, but it probably won't hurt to repeat since you brought Geri's name up. I am so grateful for that woman's insight!

 

http://crofsblogs.typepad.com/h5n1/files/ComingPandemic.pdf

 

http://mp3.rbnlive.com/Geri05.html

 

http://mp3.rbnlive.com/Moore05.html

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You know, when I read this thread earlier, I was very disappointed to view the “words” said between

Nana and Teaberry. They have been hanging heavy on my heart since I read them.

Since you two made a public post out of it, instead of taking it off line, I’m going to jump in and offer “my two cents.”

 

Nana, you are a valued member of this board. I’ve spent some time reading your old posts and yes, I can see where, at times, you are “jumped on.” Quite frankly, many people are, not just you. Not everybody is liked by everyone. However, I have also noticed that when challenged, you come back with the comment that you’ve “been here a long time and maybe it’s time to move on.”

My response to that is...that is a childish comment. If you feel the need to be begged or cajoled into staying,

then perhaps you need to examine why you are participating on this board.

I feel like comments such as those are a type of emotional blackmail and I, for one, will not participate. If you feel the need to move on, then move on. Even though I’d like you to stay, I’m not going to beg you to stay.

 

 

Teaberry, first of all, Nana wasn’t “clarifying” your statement. To clarify means to make clear.

What you said was perfectly clear. You said “stick it in people’s mailboxes.” Nana was warning us (and rightly so) that to do what you said to do, was illegal.

Second of all, Teaberry, when you so “directly and kindly” proceeded to tell us (and more specifically, Nana)

how we should preface our comments if we are going to comment on faults, you were out of line. Darlene is the owner of this board and she, and only she, has the right to decide how posts should be written. Moderators and Administrators enforce her decisions. You, Teaberry, are not an Owner, Moderator or an Administrator. Those comments you made hit me as snide and “holier than thou.” I felt like you were attacking Nana because she pointed out that your advice was illegal. What you consider petty could quite well be someone else’s pain.

 

I’ve said enough. My husband just got home from out of town so, I’m going to go visit with him for awhile.

 

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PoGo, well said.

 

I think that we all need to remember that we are all in the same place.....a very scary world that is changing daily. We all come to this palce as a refuge from the harshness that surrounds us. To find the peace and understanding that we might not get elsewhere. There may be times that I don't say much here, but I do come here 2 or 3 times daily to find the solace that I am not alone in my fears and concerns. To find that there is hope and to find an answer to the questions that are flying around my brain.

 

Darlene, thank you so much for providing me with a place to be in this crazy world.

 

 

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I have a humble request to make of those who feel the need to comment further on the misunderstanding between Nana and me. I know I hold no hard feelings whatsoever towards Nana and I do not believe she does towards me either. Our posts show that. So it would be helpful if the primary thread topic (possible food shortages) could go back to being the focus. That would help engender peace between sisters the best and avoid continuing to hurt feelings. Thanks. I'm sure no one means any harm, but it would help heal if....well, enough said. Just keep the chocolate rolling our direction and all will be well!

 

 

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