Before you put the kettle on for a brew, brace yourself, there is a biscuit shortage.
The United Biscuits factory, based in Carlisle, was forced to halt production after being hit by floods in December. They are currently yet to resume production of popular dunking biscuits such as the bourbon (pictured) and custard cream.
Retailers have responded with Sainsburys’ saying things might not be back to normal until mid-April. Tesco have said they will be back in stock by February 28th.
The problems stem from the storm Desmond and Eva which wreaked havoc in Carlisle. This caused extensive flooding which has closed the factory.
The GRC implication
Here’s the GRC takeaway from this situation.
Geographically distinct supply chain diversification. Have more than one supplier (diversification) and make sure they aren’t close to one another.
Natural disasters and incidents such as storms, earthquakes, civil disorder etc. are localised and while the likelihood is relatively low the impact will cause unavoidable disruption.
If the business is highly dependent upon the supply of goods and services then splitting supply over more than one supplier is an important consideration.