Proper planning enables SCG to tide over flood crisis

A Critical Centre with 420 employees was established in Chon Buri as the floods hit Bangkok. Because employees have been transferred to the centre, the industrial conglomerate can stay in contact with its suppliers and customers.
The smooth operation is a result of years of business-continuity planning which explored solutions to many types of disasters including massive floods.
“Under the plan, the Critical Centre would be located in either Nakhon Pathom or Chon Buri. As floods reached Nakhon Pathom, Chon Buri is now the only choice. Without planning, relocation would not have been this smooth,” Suriya Paripunna, manager for corporate business continuity management (BCM), said yester
 day.
The centre serves as the head office, with staff from all departments including finance, sales, call centre and human resources. The distribution, sales and service operations were the first to move to Chon Buri on October 19, followed by the finance department on October 21. About 1,000 rooms in hotels in Chon Buri and Rayong have been turned into temporary accommodations for the staff working there and those affected by floods. SCG has allocated about Bt2 million to facilitate its staff to work during the crisis.
Some departments, such as corporate communications, and employees who can go to the office still work at Bang Sue. Others whose residences are inundated can work outside the office by logging into the company’s virtual private network.
The plan effectively answered the most crucial question: “How can the company proceed with doing business, if all employees cannot come to the head office?”
BCM was first shaped after the political violence in May of last year, as SCG, like other businesses, was affected by the mayhem. A plan is necessary to ensure smooth operations of the group – which covers 200 companies operating in the petrochemical, cement, paper and distribution businesses – despite unprecedented situations like the political demonstration or natural disasters. Drawn up with help from Accenture, the plan calls for the participation of all business units.
The plan covers many scenarios of disruption, from political demonstrations, bomb threats and disease outbreaks to flooding in Bangkok. For continuity, the business needs a backup office and critical business departments. Months before the disaster hit Bangkok, the plan was ready.
“Fortunately, the plan was in place just in time for the severe flooding,” Suriya said.
“Natural disaster impacts are intensifying as the world is getting warmer and rainfall will increase. When we planned the BCM, we believed that Bangkok will be inundated one day, but we did not know that it would happen sooner than expected."
In September, SCG ordered subsidiaries in Nava Nakorn Industrial Estate, one of the seven inundated industrial parks, to prepare for floods. The preparation steps under the BCM were materialised, including the establishment of the Critical Centre in Chon Buri.
The IT system was installed about a week prior to moving the critical departments such as finance, sales, call centre and human resources to the eastern office on October 21.
Daily, all departments meet for the flood situation summary, so that the group can plan in advance the distribution of products. Aside from 420 employees, the centre is overseen by SCG’s top executives, including president and CEO Kan Trakulhoon, who has checked into hotel rooms in both Chon Buri and Rayong. These executives convene via teleconferencing at 9.30am every day to follow up on the situation and brainstorm the next moves.
Lucksananoi Punkrasamee, managing director of SCG Accounting Services, a subsidiary responsible for the accounting jobs of all companies under SCG’s umbrella, said the finance department was the critical function and its operation cannot be disrupted. All employees must be ensured that they will get salaries on time, while financial transactions between SCG and both lenders and customers must not be interrupted.
SCG Accounting Services has some 750 employees, of which 150 now are at the eastern office. From the temporary centre, all transactions proceed on time, with some exceptions.
“Thanks to the vision of our CEO, employees have a clear mind on what they have to do. The result is SCG can still serve clients smoothly and assist flood victims as well. We also thank all employees who did not mind moving here to help the company during the crisis,” he said.