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April 22-6KHUDWRQ6DQ'LHJR+RWHO 0DULQD
Introduction A Best Practices Approach To Developing & Sustaining Corporate Emergency Supply Caches
This is not just a presentation. It is an interactive discussion with integrated Q&A along the way
Effective sustainable supply provisioning is a continuing challenge due to its complexity, budget requirements, multiple vendor development, expiration monitoring and many other time and resource consuming factors
The session presents a case study that outlines what we have learned over past 7 years. It provides you with the methodology to properly equip your facilities with effective levels of supplies «managed preparedness
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April 22-6KHUDWRQ6DQ'LHJR+RWHO 0DULQD
Introduction With these best practices, you can y Align what you procure with your particular situation/environment y Save money by budgeting more effectively y Avoid over buying y Match the supplies you procure to the types of disasters you could potentially face
$IWHUWKHSUHVHQWDWLRQDQGGLVFXVVLRQZH¶OOSURYLGH\RX with a preparedness checklist that will help you manage this important task
Introduction The information we present today was just published (March 2013) in the peer reviewed paper LQWKHLQWHUQDWLRQDOSXEOLFDWLRQ³7KH-RXUQDORI Business Continuity and Emergency Planning, England Volume 6, No. 3
Published by Henry Stewart Publications-London, England
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Brief Profile...
:RUNLQJWR(VWDEOLVK%HVW3UDFWLFHV«
and comprehensive ³PDQDJHGSUHSDUHGQHVV´ approach, unique in the industry
³%HVW3UDFWLFHV´VWDQGDUGVUHODWLQJWRphysical preparedness have not existed in the past
Determined need to organize disaster preparedness into an easier-to-accomplish process
Livermore, CA corporate headquarters, showroom
)RXQGPDQ\GHILFLHQFLHVLQLQGXVWU\¶VSDVWDSSURDFKHV provisioning factor, false 3-day kits, no consideration for Basal Metabolic Rate (BMR), hydration)
Seeing more and more companies embrace preparedness and making the investment
Companies increasingly believe that preparedness has ROI
7KH³Nexis Preparedness System´LVDIXOOVHUYLFH
& kit assembly and distribution center
Fortune 500 list of clients Company website is www.nexisprep.com
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Typical Gaps & Deficiencies in Physical Preparedness 1.
Failure to consider potential disaster risks for each of your locations individually and acquiring the proper supply mix accordingly
2.
Not varying provisions for shelter in place versus evacuation scenarios
3.
Under or over preparing based on employee population
4.
Not having an appropriate amount of food and water to comfortably sustain employees
5.
Thinking that a 1-day kit is really a 3-day kit
6.
Not understanding the quantities and ratios of supply mix (kits vs. trauma vs. toilets vs. lighting, etc.)
7.
Mismatch on how much storage space is required versus how much is available
8.
Difficulty in keeping track of expiration dates on perishables including medical supplies
9.
Throwing away supplies at the end of their life instead of repurposing them
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1. Consider potential disaster risks for each of your locations individually and acquire the proper supply mix Preparedness approach must relate to disaster susceptibility
Earthquake/ Severe Weather
Tornado/ Severe Weather/ Flood
Hurricane/ Severe Weather
Hurricane
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2. Vary provisions for shelter-in-place versus evacuation scenarios Identify ± Disaster zones via IBHS*
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Discussion Topic: Vary provisions for shelter-in-place versus evacuation scenarios Example: Hurricane = evacuation whereas earthquake = shelter in place.
-Where available use additional resources to determine disaster type (ABAG, USGS, etc.)
SF Bay Area-estimates when Hayward Fault ruptures are for 1734 roads to be FORVHG ;PRUHWKDQDIWHU/RPD3ULHWD FRUSRUDWH³%HG %UHDNIDVW´IRU some period of time Discussion Points:
Site Specific Kits ± Determine correct kit contents for disaster zone Site Specific Supply Mix ± Be sure overall supply assortment relates to disaster type
Is your emergency plan designed for evacuation and re-entry of your buildings? Are you prepared to provide for employees stranded in the parking lots?
Are your communication tools adequate for both evacuation and shelter-inplace scenarios?
Have you trained for and drilled the deployment of emergency supplies?
* Insurance Institute For Business & Home Safety
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April 22-6KHUDWRQ6DQ'LHJR+RWHO 0DULQD
Employee Commute Distance Analysis
3. Prepare based on employee population attrition or surge
39.5% of Company Employees live 10 miles
Frequency
Surge - ³:H¶UHJRLQJEDFNWRZRUN´ y Health care, utilities (infrastructure), private sector responders, local, state and federal agencies y $SSO\IDFWRU PXOWLSOLHU EDVHGRQ³VXUJH´
9.89%
10
809
39.54%
15
548
59.62%
20
470
76.84%
25
120
81.24%
30
101
84.94%
35
87
88.13%
40
111
92.19%
45
79
95.09%
50
12
95.53%
55
14
96.04%
40.00%
60
15
96.59%
30.00%
65
16
97.18%
70
7
97.43%
75
5
97.62%
80
1
97.65%
85
3
97.76%
90
3
97.87%
95
2
97.95%
100.00%
800
90.00%
80.00% 70.00%
600
Cumulative %
270
900
700
Employees 5
NetApp Employee Commute Distance
Two Ways to Approach Preparedness: Attrition ± ³:H¶UHKHDGLQJKRPH´ y Many businesses and institutions y Apply a 100%-50%-25% employee factor
Miles
60.00% 500 50.00%
Frequency Cumulative %
400 300 200
20.00%
100
10.00%
0.00%
0
Miles
100 More
0
97.95%
56
100.00%
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'RQ¶WIRUJHWWKHUHFRYHU\VLGHRI\RXU business!
Discussion 7RSLF 'RQ¶Wforget the recovery side of your business!
&RUSRUDWHLQVWLWXWLRQDOSUHSDUHGQHVVPXVWDOLJQ« y Readiness-Initial response to a disaster for overall employee base-2-3 days y Recovery-Provide support for multiple weeks for recovery team comfort and provisioning ³7KH&RUSRUDWH&DPSRXW´
Discussion Points: Poll:
y Are you prepared for attrition or surge? y How many people are on your recovery team and for how many days do you plan for them to operate?
y Have they trained with your response team?
Do you know how to mobilize emergency resources? Does your plan include resources to stay overnight and operate in shifts on a 24/7 basis?
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4. Provide sufficient food and water to comfortably sustain employees Emergency Food ± how much is needed?
There are no Red Cross / FEMA guidelines for emergency food due to wide variety of factors
BMR (Basal Metabolic Rate) is one metric to determine caloric need. BMR is what a body consumes at rest just to survive
BMR for a 185 lb PDOH¶´\HDUVROGLVDERXW FDORULHV For a 135 lb IHPDOH¶´\HDUVROGLVDERXWcalories
Water ± how much is needed?
Red Cross / FEMA guidelines recommend ½ gallon per person per day for consumption
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Harris Benedict Formula Consideration Used to calculate true caloric requirements by factoring activity level
Added to the BMR calculation
Result is referred to as the Active Metabolic Rate or AMR. If a person is sedentary: calorie calculation = BMR If a person is lightly active: calorie calculation = BMR
1.2. 1.375.
If a person is moderately active: calorie calculation = BMR If a person is very active: calorie calculation = BMR
1.725.
If a person is extra active: calorie calculation = BMR
1.9.
1.55.
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Discussion Topic: Provide sufficient food and water to comfortably sustain employees and provide for recovery Discussion Points:
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:KHQD³-GD\NLW´LVRQO\D-day kit CAUTION: Many promote a 3-day survival kit that contains a 2400 calorie food bar and a total of 3 ³MXLFH ER[HV´ of water Typical Levels Observed
Poll y Prior to this session, were you aware of BMR guidelines and Harris Benedict factors? y How have you calculated the amount of emergency food and water you need to adequately sustain your employees and teams? y Is your approach aligned with your response and recovery plans? y How will the resources be distributed and accounted for?
2400 calorie bar
800 cal per day 42% BMR (male)
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3600 calorie bar x 2
2400 cal per day 126% BMR (male)
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Discussion
5. When a ³-GD\NLW´is only a 1-day kit
Topic: 3 Day or 1 Day Kit ± A Crucial Choice
Emergency Water Requirements: The Red Cross /FEMA recommend at least ½ gallon of water per person per day for consumption (an additional ½ gallon is recommended for hygiene) Typical Levels Observed
Recommended Levels
Recomm. Supply Level
Discussion Points: Poll
How are you prepared to distribute emergency food and resources? Are your response and recovery teams trained?
Have you designed or required an emergency kit? Aqua Blox Aqua Literz in kit plus bulk supplement
8.5 oz per day 13% of minimum
67.6 oz per day 106% of minimum
What are your essential ingredients for a 3 day kit? Have you considered your special dietary needs employees?
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6. Quantities and ratios of supply mix (kits vs. trauma vs. toilets vs. lighting, etc.) Not an easy task!
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Discussion Topic: Supply Quantities and Ratios ± Your Management Expects You to Know Discussion Points:
6WDUWZLWK\RXUFRPSDQ\¶VUHTXLUHPHQWVFRPSDUHGZLWKUHOLHI agency standards where they exist
Use common sense in calculating quantities needed for all other items
Ask vendor(s) to provide calculation data for ratios of how to purchase related things. Example: emergency sanitation requires toilets, chemicals, liners, deodorizer, privacy shelter, toilet paper or wet wipes
Poll y If you currently procure supplies, how do you calculate the quantity and ratio to purchase? y Are you comfortable setting up tents, privacy shelters and lavatories? y Do you know the ratio of each multi user items to employees? (toilets, lanterns, search & rescue, etc.)
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7. Supply storage In earthquake country, supplies should be stored outside of the building if at all possible. (Shipping containers are perfect!)
Other disaster zones supplies can be stored indoors
Get vendor to provide cubic dimensions of highest quantity and largest cubic space requirement items
Ideally store supplies on shelving for rapid access
When calculating shelving requirements, factor in stack factors (loading efficiency), weight distribution, etc.
In cold weather climates, be sure to acquire water that is
manufactured with freezing in mind if storage is not in a heated location
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Storage Solutions
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Discussion Topic: Storage Options- Where the Resources Meet the Sustaining Annual Budget
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8. Keep track of expiration dates of perishables Documents compliance with disaster preparedness plans
Discussion Points: Poll
Ensures supplies are viable (no expired products)
Minimizes risk
Have you aligned your risks, including cold and warm weather, and storage options? Are you aware of supply item vulnerabilities? Is storage and resource mobilization a working component of your emergency and response plan?
Do you have a plan to easily transport your supplies from your storage area(s) to the point of use and/or distribution?
Could your storage option become a communication hub (EOC?), medical treatment center, executive management safe-haven, etc. once the resources have been deployed?
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Item Description Eye Wash Solution 4 oz.
8. Keep track of expiration dates of perishables
Approx Shelf Life 2 years
BZK Antiseptic Wipes
2.5 years
Antibiotic Ointment Packet
2.5 years
12-Hour Green Lightsticks 30 Min High Intensity Yellow Lightsticks
Dust Masks
y Avoids throwing items in landfill (items get second, immediate usage) y Good for the local community y Possible tax benefit depending on accounting practices
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:KHQ$*RRG³&DFKH´*RHV%DG«
4 years 5 years 5 years 5-7 years
Aqua-Blox Survival Water
5 years
Emergency Water (Aqua-Liters)
5 years
Bandage Sheer 1" x 3"
5 years
CPR Shield
5 years
Emergency Food Bars
5 years
Industrial Duct Tape 2" x 50 yards.
5 years
Latex Gloves
5 years
MREs
Supports ability to donate certain supplies prior to expiration date
4 years
Adhesive Tape 1" x 10 yards.
Vented Safety Goggles
expired items during an event.
4-5 years
3" x 5 yards. Elastic Bandage
Alkaline D Battery
y Documented employee coverage in known hazard zones y Supplies are viable (not expired) so no repercussion from using
7 years 1-7 years*
*Shelf life drops dramatically if not stored below room temperature
$80,000.00 wasted and trashed!
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Discussion
One more thing to FRQVLGHU« potential legal exposure!
Topic: Emergency Supply Expiration Management Discussion Points:
Poll:
Why should you care about monitoring the expiration dates? What resources expire first, last and never?
Do you have the ability to monitor your perishable resources over a 5-20 year time horizon? Are they aligned with your plan and team training?
What is your reaction to donating supplies to a nonprofit, such as a homeless shelter, just prior to their expiration?
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April 22-6KHUDWRQ6DQ'LHJR+RWHO 0DULQD
Consider the Risk Legal Exposure And /LDELOLW\« Risk of legal exposure and liability is another very important reason to prepare businesses for disasters ³/HJDO3ULQFLSOHRI ³Foreseeability´- Example: Earthquakes have and will continue to occur in California. The impact resulting from an earthquake may be foreseeable and under some circumstances can be mitigated, at least partially.
Discussion Topic: The Future of Emergency Supplies and You Discussion Points: Poll
Legal liabilities and emergency supplies²do you believe they are connected?
'R\RXEHOLHYH\RXUFRPSDQ\¶V&-level management and
board of directors are aware that physical preparedness of the workplace can help mitigate their legal exposure?
Are your C-OHYHOPDQDJHPHQW³ERXJKWLQ´RQKHOSLQJWR protect the welfare of your employees?
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ROI and Standards
The Nexis preparedness system
New ISO 22301 standard on Business Continuity Management will help drive more companies to achieve compliance and get serious about an effective and measurable level of readiness
Preparedness ROI studies show returns ranging from 4:1 all the way up to 108:1
:KDWHYHUWKH52,LVLILW¶V RUJUHDWHULW¶V worth it!
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What Does Nexis Preparedness Systems Do? Prepare organizations nationwide for disasters Keep them prepared by monitoring supply status and replenishing prior to expiration
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Corporate Preparedness Process Value-Added Service Elements-The Complete Solution Analysis & Fulfillment
Site hazards overview Determine objectives ± duration, attrition, site specific Precision supply calculation (software tools)
Enhance corporate resilience & sustainability A one-stop source for all preparedness resources Operate kit-assembly facility-Livermore, CA Helps facilitate donation of perishables to worthy causes before they expire
In short, NPS SURYLGHVDQLQGXVWU\ILUVW«³0DQDJHG 3UHSDUHGQHVV´
Inventory supplies ± existing and new
Monitoring & Maintenance
Training & Employee Personal Preparedness
Monitor ± inventory tracking and compliance reporting Donation notification & connection± prior to expiration
Employee personal preparedness seminars
Employee personal supply discount program
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April 22-6KHUDWRQ6DQ'LHJR+RWHO 0DULQD
Enterprise Preparedness Benchmarking Data
,W¶VQRWH[SHQVLYH
Category
Effective employee preparedness can range from $60-$130 per employee, depending on days of provision, depth of preparedness and other factors
Cost per employee per year ranges from $12 to $26 per year.
After initial cost, replenishment after 5 years is about 50% of the initial purchase
Total Cost
Annual Cost Over 5 years
1,000
$77,075
$15,415
$77
$38,000
Semiconductor
267
$24,000
$4,800
$89
$12,000
Medical Device
332
$27,000
$5,400
$81
$13,500
Technology
137
$17,000
$3,400
$124
$8,500
Bio-Tech
750
$63,750
$12,750
$85
$31,875
Bio-Tech
450
$56,531
$11,306
$126
$28,261
Law Firm*
310
$21,626
$4,325
$70
$10,813
Financial*
2551
$152,737
$30,547
$60
$76,369
Nutrition
662
$82,307
$16,486
$125
$41,154
Technology
700
$76,700
$15,340
$110
$38,350
Bio-Tech
# of Employees
$/Person Over 5 Years
Replenishment Cost @ 5 Years**
*Storage space limited **Approximate cost-varies by initial product mix
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Supply scenarios Typical $60 scenario
24 hr kit Day 2/3 bulk food/water
Typical $120 scenario
72 hr kit Bulk water Hygiene water
Lighting
Lighting Generators
Sanitation
Sanitation
First Aid & Trauma
First Aid & Trauma
S&R Floor Warden Recovery Team
Computer Demo
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The End
«managed preparedness