• Discuss the ramifications of this major internet outage on

procurement and supply chain operations and activities of

businesses.

Answer

The ramifications of a major internet outage on procurement and supply chain

operations can be significant and wide-ranging. Here are some key points to consider:

• Communication Disruption: The internet outage can disrupt communication

channels between suppliers, manufacturers, distributors, and customers. This
can lead to delays in placing orders, receiving updates on shipments, and
coordinating logistics.

• Order Processing and Tracking: Without internet access, businesses may

struggle to process and track orders efficiently. This can result in delays in order
fulfillment, inventory management issues, and potential stockouts.

• Supplier Collaboration: Many businesses rely on online platforms and tools to

collaborate with suppliers, share information, and manage contracts. An
internet outage can hinder these collaborative efforts, impacting supplier
relationships and potentially causing disruptions in the supply chain.

• Inventory Management: Accurate and real-time inventory management is

crucial for efficient supply chain operations. An internet outage can hinder
access to inventory management systems, making it challenging to track
inventory levels, forecast demand, and plan for replenishment.

• E-commerce and Online Sales: For businesses heavily reliant on e-commerce

and online sales, an internet outage can have a severe impact on revenue
generation. Customers may be unable to place orders, leading to lost sales
opportunities and potential damage to the brand’s reputation.

1
Suggest strategies businesses can adopt to mitigate the repercussions of
the internet outage.

Answer

When faced with an internet outage, businesses can adopt several strategies to
mitigate its repercussions. Here are some suggestions:

• Diversify Internet Service Providers (ISPs): Relying on a single ISP can be

risky. By diversifying ISPs, businesses can ensure that they have backup
options in case one provider experiences an outage. This can involve having
multiple physical connections or using different types of connections like cable,
fiber, or satellite.

• Implement Redundant Network Infrastructure: Setting up redundant network

infrastructure can help minimize the impact of an internet outage. This can
include having backup routers, switches, and servers that can take over in case
of a failure. Redundancy can also be achieved through cloud-based services or
data centers.

• Use Mobile Hotspots or Cellular Data: In situations where the primary internet
connection is down, businesses can use mobile hotspots or cellular data as
temporary alternatives. This allows employees to stay connected and continue
essential tasks until the main connection is restored.

• Utilize Offline Capabilities: Businesses should consider implementing offline

capabilities for critical systems and applications. This means having backup
servers or local copies of important data that can be accessed even without an
internet connection. This ensures that essential operations can continue during
an outage.

2
• Develop a Business Continuity Plan: Having a comprehensive business
continuity plan is crucial. This plan should outline the steps to be taken during
an internet outage, including communication protocols, alternative workflows,
and contingency measures. Regular testing and updating of the plan are
essential to ensure its effectiveness.