Business Continuity Planning

Objective

Business Continuity Manual provides a framework for all locations and business units under Mega Lifesciences to develop and maintain their Business Continuity Plans (BCP).

:The objectives of creating a framework and supporting plans are:

To respond to threats on continuity of business arising from non-routine events resulting from natural calamities, political changes, conflicts, threats, outages of utilities, epidemics/ pandemics, Fire, theft, etc.

Discharge critical function of health care supply chain by supplying essential, life saving and basic nutritional products.

Reassure staff, government, customers including trade customers, Principals, etc.

Ensure speedy recovery of business to avoid/ minimize any loss shareholders’ wealth.

Stakeholders

Each Location/ business shall identify the key stakeholders. Typically the stake holders shall include:

Employees
Board of Directors
Board of Management
Shareholders
Stock Exchange of Thailand
Securities Exchange Commission of Thailand
Government including Revenue Department, Ministry of Commerce, Ministry of Health, etc
Principals
Non-Governmental Organizations (NGOs)

Customers including hospitals, retailers and wholesalers
Suppliers for transport, office suppliers, administrative, Gel suppliers, warehousing contractors, Generator service, Diesel supplier, Security, etc
Banks
Insurance Companies
Media advisor/ PR Advisors
Opinion formers i.e. Key Doctors, Key Customers, Key Hospitals, Ministry of Health.

Organization

The Company shall appoint a team which is responsible for Business Continuity for each location. Each location/ business shall identify critical functions for the business and the crisis team shall comprise of the head of each function/ process. The Company shall also identify and designate a successor for each of the functions/ processes so identified.

The Company shall also identify stake holders responsible for each business and the Crisis team shall be assigned responsibilities for directly dealing with each of the stakeholders.

The Crisis team shall include head of each process/ function, Country head/ Managing Director, Head Coach for the respective business/ location, Chief Financial Officer and Chief Executive Officer. The Crisis team shall be designated as below:

Designation	Stakeholders to deal with
Designation CEO & Chief Coach	Board of Directors/ Shareholders/ Media/ Board of Management/ Staff
Chief Financial Officer	Shareholders/ Banks/ Financial Institutions/ Stock Exchange of Thailand/ Securities Exchange Commission/ Stock Analysts/ Government
Managing Director	Principals/ Suppliers/ Customers/ Local media/ Staff
Sales Director	Trade Customers/ retailers/ Wholesalers
Procurement Director	Suppliers
Administration Director	Suppliers
Finance Director	Revenue Department/ Auditors/ Banks
Human Resources	Staff/ Labor ministry/ Provident Fund/ Social Security/ Hospitals
IT Director	Internet Service Provider (ISP)/ Hardware vendors/ Networking/ Communications/ ERP/ CRM vendors

The CEO shall be the head of the Crisis team in all situations and in case the CEO cannot be communicated then the Head Coach heading the business along with the CFO shall head the Crisis team.

Each Location shall form a crisis team and also identify successors to each of the team members. The locations shall also form a Directory of contacts for the Crisis team members to facilitate contact as and when needed during emergencies. The Locations shall have the information for each of the Crisis team member and their successors in the format as covered under Appendix A.

Critical Business Functions

Each location/ business shall identify critical business functions responsible for its continuity during the period of crisis. Typically the critical business functions shall include:

Manufacturing
Quality Control
Customs clearing and handling
Warehousing
Picking and packing
Delivery
Accounting

Human Relations/ Communications team
Sales order taking
Information Technology
Collections
Government Interaction especially with Revenue Department, Ministry of Commerce and Ministry of Health/ FDA.

The List of critical functions and the respective details shall be maintained in the format provided in Appendix D.

Guidelines for identifying critical business functions and the respective heads by the locations/ business:

Functions needed for immediate basic recovery
Clarity about heads responsible for communications to key stakeholders
Mode and content of communication to key stakeholders on a timely and regular basis
Easy Access to heads of key functions
Ensure that key functions are activated early on
Prioritize the utilization of resources for key functions

Ensure focused recovery of key functions
Afford time for non-key functions to start without compromising on the main objectives of the BCP
Safeguard the property of the company
Safeguard and take critical measures to avoid any harm to business reputation
Ensure compliance with government directives during times of crisis
Ensure compliance with instructions/ strategy of the Board of Directors

Classification of Products/ Services

The Company including each Location/ business shall maintain a classification of products to be supplied to ensure compliance with key objective i.e. ‘Discharge critical function of health care supply chain by supplying essential, life saving and basic nutritional products’.

The Classification of products/ services shall be done based on the following parameters:

Company Driven

i.e. Company’s understanding of key products which are critical for the customers/ consumers which may vary

Government Driven

i.e. Products which are classified as essential during times by crisis by heath ministry or government agencies like Food and Drug Authority, etc

International Agencies Driven

i.e. products designated during crisis by agencies like WHO, etc

Principal Driven

i.e. those products which are designated important by Principals based on Principals’ BCP or Corporate Social objectives.

Public Driven

i.e. products which are designated by NGOs, Social organizations, demanded by people through various media voicing people’s concerns.

The Company shall keep a ready list of products which are considered essential based on its definition. Also, during times of crisis, the Company shall gather intelligence and invite views to understand and accordingly classify products as critical in the supply chain to meet its BCP related objectives during times of crisis.

Communications Strategy

One of the key concerns of the BCP is to communicate to the stakeholders during times of crisis. The Company needs to designate Crisis team members to communicate stakeholders at all levels. The Company needs to understand and measure the extent of influence and interest of various stakeholders in the company’s operations during times of crisis.

The company shall classify stakeholders based on the extent of influence on the Company’s operations determined by their significance and also extent of interest in the situation. The Company shall determine the extent of involvement of each stakeholder and the communication strategy shall be laid out accordingly.

The Company shall identify the spokesperson who shall deal with each of the stakeholders and the company shall also determine the communication which has to be sent to each of the stakeholders.

The Company shall decide the extent of communication with each of the stakeholders and also the crisis team member in charge of each such communication.