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Restarting the Pick Floor After the Flood

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Restarting the Pick Floor After the Flood

At 21:40 on a Friday a mains water failure floods roughly 40 per cent of the pick floor at a regional distribution centre to a depth of 30 cm. Sixty staff are evacuated without injury and the MHE charging bay is submerged. About 1,100 customer orders are due for despatch by Monday. The BCP records a 24-hour RTO for order fulfilment and a 72-hour maximum tolerable period of disruption; one contract carries penalties of £12,000 per day after Monday. The wet zone needs drying and electrical recertification, which engineering estimates at five days. The dry zone has an independent power supply. The insurer's loss adjuster cannot attend before Tuesday. The site director proposes restarting picking in the dry zone at 06:00 on Saturday.

1. Should the site director be permitted to restart picking in the dry zone on Saturday morning? Set out how you would decide.

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Separate two questions that the proposal conflates: is it safe and lawful to operate? and is it commercially wise? Only the second is the site director's to trade off.

Gating criteria (non-negotiable):

  • Electrical certification of the dry zone confirmed by a competent person, not by the absence of tripped breakers.
  • Life-safety systems verified in the whole building - fire detection, suppression, escape lighting, means of escape - because a partially occupied building with a flooded zone changes evacuation assumptions.
  • An alternative MHE charging and refuelling arrangement, since that bay is submerged.
  • Welfare and access routes for staff, plus a decision on whether contractors working in the wet zone create a simultaneous-operations risk.

Then a risk-based decision with a named accountable owner, a written record of residual risk, and a stop condition. A defensible answer is 'yes, on the dry side, under those conditions' - not 'no until Tuesday', which simply transfers the loss.

One trap: letting the insurer's Tuesday attendance gate safety decisions. Evidence preservation is real, but it is satisfied by dated photographs, video and sampling, not by idling a facility for four days.

2. How would you sequence recovery for the 1,100 orders?

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Not first-in-first-out, and not 'everything is urgent'. Triage on three axes:

  1. Contractual exposure - orders that trigger the £12k/day penalty or a MTPD breach.
  2. Customer criticality - accounts whose loss would exceed the penalty value; a 20-year OEM customer matters more than a marginal one-off.
  3. Substitutability - can the order be fulfilled from another site, a 3PL, or a partial shipment?

That usually yields four buckets: fulfil now from the dry zone, fulfil via an alternate site at a cost premium, part-ship and back-order the balance, and renegotiate openly.

Then communicate dates before the customer discovers them. A revised date offered on Saturday is service recovery; the same date discovered on Tuesday is a breach. Reduced throughput is acceptable if published; unannounced slippage is what damages the relationship.

3. How would you define 'recovery complete' for this event, and what would you track to know?

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'Recovery complete' is not the day the pick floor reopens. Reopening is one milestone inside recovery. A defensible completion test has several conditions, all evidenced:

  • The wet zone is restored, recertified and back in service at normal capacity.
  • The order backlog is cleared and on-time performance is back inside tolerance for a sustained period, not a single good week.
  • Customers affected have been contacted and any service credits settled.
  • Financial loss is quantified, the claim is progressing with the adjuster, and uninsured elements are recorded.
  • Root-cause actions have owners and dates - for example, the water main's isolation and detection arrangements.
  • Plan and BIA assumptions that proved wrong (the 24-hour RTO versus a five-day recertification) are amended.

Track leading indicators, not just milestones: backlog ageing, percentage of floor capacity in use, open claim items, staff absence in the aftermath, and repeat near-misses. Declaring completion early is how organisations lose the learning.