Disrupted supply of raw materials

Potatoes

SnackCo has contact with multiple suppliers and can switch quickly with today’s small quantities. Please see the document ”Suppliers, Raw Materials and Evaluations”

Seasoning

The supplier owns the recipes so switching is hard. SnackCo only uses reliable suppliers to prevent this problem. In case of an emergency, SnackCo has contact with other suppliers that can copy the flavor. The purchasing personnel therefore need to give the supplier good lead-time when ordering the seasonings to avoid problems and to have options.

Oil

Multiple suppliers available as the raw material is not unique and available elsewhere.

Packaging material

New suppliers can be used within 6 weeks if the artwork is ready. SnackCo wants to have at least two current suppliers of film material to not rely too much on one and to have alternatives. Corrugated has a shorter lead-time.

Disrupted supply of utilities

Water

If production is going, a shorter missing supply of water would not stop the Kettle Chips nor Kettle Corn production for the day. 

The city is supplying us with water; if the supplies end for the whole city there isn’t much SnackCo can do but wait. If it is a local problem, their technicians are close by. It is determined that the risk isn’t big enough to come up with alternatives, such as storage tanks.

Power

Rocky Mountain Power is the major power company in this State. They supply us with power and technicians when needed. If the power will go out for the area it is out of our hands. If the problem is local, maintenance personnel are available. A back up generator is not an option since it could not supply us with enough power to maintain production. SnackCo does not have any raw material that requires refrigeration.

Natural Gas

Try to save products if possible, but empty machines when appropriate. If the gas supply is out production will stop. Packing could, however, continue. Our gas supplier is large and reliable, no problems during our history. Smaller storms and weather changes should not interrupt this supply since the lines are underground. SnackCo have contact with Questar technicians for local problems.

Essential machinery breakdown

Spare parts for essential machinery are kept in house, we also have over night delivery options from the manufacturers or local parts suppliers. Some machines can be substituted by work force even though that could be a more expensive solution.  We have in house knowledge for almost all of the potential breakdown that can occur and contacts for external assistance and support.

Disrupted transportation system

We have multiple transportation companies available to pick up raw material and deliver finished goods. If weather disrupts, it we will simply have to wait it out.

Disrupted communications

Internet- Since our server is cloud-based a lost Internet connection would make us unable to update our documents. All documents are backed up to local computers hard drives, which makes it possible to still access all documents. Accounting software is stored locally on the network and will both be effected.

Phone 

The phone line is transferred to an online answering machine. This can be transferred to a cellphone if service is lost.

Fax 

Our fax is virtual and forwarded via email.  No faxes will get lost during a lost connection

Email and QuickBooks 

We only use well trusted companies with our data.  There services are as trusted and reliable as any other option.  We have temporary emails available as well as the ability to locally create our own documents that normally would be created by the software.

Data and electronic documents

Data and electronic documents are backed up by the service provider or into a second local drive.