[BCM] [BT] [E3] [PD] [CBF] [8] Procurement & Supply Chain Management

Business Continuity Recovery Procedure

CBF-8: Procurement & Supply Chain Management

Introduction

The Procurement & Supply Chain Management function (CBF-8) plays a vital role in ensuring that Bandtree maintains uninterrupted access to critical goods, services, and vendor relationships that support the company's core property management and infrastructure operations.

As a government-linked company operating under Darussalam Assets Sdn Bhd, Bandtree relies on an agile and resilient procurement ecosystem to meet national service expectations and contractual obligations.

This Business Continuity Recovery Procedure outlines the structured response and recovery steps to be taken in the event of a disruption affecting CBF-8. It covers the full lifecycle of recovery, from pre-crisis preparedness, immediate resumption within the first 24 hours, and complete restoration post-crisis.

The procedures are designed to minimise downtime, prevent supply chain bottlenecks, and safeguard compliance and governance standards during a crisis.

Each sub-function of CBF-8—ranging from vendor selection and contract management to emergency procurement and logistics coordination—has been examined to ensure that recovery steps are timely, role-specific, and actionable.

These procedures aim to strengthen Bandtree’s operational resilience and ensure that procurement activities remain responsive, compliant, and aligned with the company's continuity objectives.

Critical Business Function: CBF-8 Procurement & Supply Chain Management

WHAT: Overview and Importance

Procurement & Supply Chain Management ensures the uninterrupted acquisition, coordination, and delivery of essential goods and services that support Bandtree’s corporate property management operations.

This function oversees critical processes such as vendor qualification, contract management, purchase approvals, inventory control, and emergency procurement.

Any disruption may directly impact project delivery timelines, compliance with regulatory obligations, and the continuity of client-facing services and facility operations.

Pre-Crisis: Preparedness Phase

Objective

Establish and maintain readiness measures that ensure the continuous operation of procurement and supply chain activities in the event of a disruption. This phase focuses on prevention, resource alignment, and contingency planning to minimise downtime and support rapid recovery.

1. Supplier and Vendor Preparedness

• Prequalification and Vetting:
  • Maintain an up-to-date database of pre-qualified vendors and service providers, categorised by criticality and product/service type.
  • Evaluate suppliers based on performance, financial stability, and ability to deliver during emergencies.

• Alternate Supplier Arrangements:
  • Identify at least one backup supplier for each critical supply category.
  • Establish Memoranda of Understanding (MoUs) or standby agreements with alternate vendors to ensure continuity.

• Communication Readiness:
  • Maintain current contact lists and escalation procedures for all critical suppliers.
  • Conduct periodic supplier communication drills to test response times and delivery commitments.

2. Contracts and Legal Safeguards

• Contract Management:
  • Ensure all active contracts include business continuity clauses, service level agreements (SLAs), and force majeure provisions.
  • Digitise and securely store all procurement-related contracts in centralised and backed-up document repositories.

• Review and Compliance:
  • Regularly review vendor agreements for compliance with regulatory and operational continuity requirements.
  • Include disaster recovery commitments and delivery guarantees in high-priority supplier contracts.

3. IT Systems and Data Resilience

• Procurement System Readiness:
  • Ensure procurement platforms (e.g., ERP, e-Procurement portals) are included in IT disaster recovery plans.
  • Conduct regular backups of procurement data, with off-site/cloud replication.

• Testing and DR Drills:
  • Participate in semi-annual disaster recovery (DR) testing to validate system RTO and RPO.
  • Verify restoration procedures and access for procurement data and workflows.

4. Human Resource Readiness

• Staff Roles and Responsibilities:
  • Define the roles and responsibilities of procurement team members during a disruption.
  • Cross-train key staff on critical procurement processes and emergency workflows.

• Recovery Staffing Plans:
  • Identify the minimum staff required to maintain procurement continuity at a recovery site.
  • Prepare a deployment roster for relocation to alternate facilities if needed.

5. Logistics and Inventory Preparedness

• Inventory Buffering:
  • Maintain safety stock levels for critical goods and consumables based on risk and usage analysis.
  • Coordinate with warehousing and logistics teams to ensure visibility of inventory during disruptions.

• Transport and Delivery Alternatives:
  • Identify alternative transportation and distribution arrangements for critical deliveries.
  • Establish partnerships with logistics providers who have contingency capabilities.

6. Communication and Coordination

• Crisis Communication Planning:
  • Develop a communication matrix to ensure timely updates to suppliers, internal stakeholders, and management during disruptions.
  • Pre-draft communication templates for emergency procurement notifications and instructions.

• Inter-Departmental Coordination:
  • Align procurement continuity plans with related departments (e.g., Finance, IT, Operations) to ensure seamless integration.

7. Monitoring and Continuous Improvement

• Risk Monitoring:
  • Continuously assess geopolitical, economic, and operational risks that could affect the supply chain.
  • Use supply chain risk intelligence tools where available.

• Plan Maintenance and Review:
  • Review and update procurement continuity plans at least annually or after major incidents.
  • Incorporate feedback from simulations, audits, and recovery events to improve preparedness.

The Pre-Crisis Preparedness Phase ensures that Bandtree’s Procurement & Supply Chain Management function can anticipate, mitigate, and respond to disruptions effectively.

Through supplier readiness, system resilience, contractual safeguards, and proactive planning, Bandtree builds a robust foundation for rapid recovery and business continuity.

Within T+24 Hours (RESUMPTION Phase)

Objective

Resume the most critical procurement and supply chain operations within the first 24 hours following a disruption to ensure continuity of essential services, mitigate supply shortages, and stabilise Bandtree's operational needs.

1. Initial Damage and Impact Assessment

• Rapid Procurement Function Assessment:
  • Conduct a quick evaluation of which sub-functions (e.g., supplier communication, system access, approvals) are affected.
  • Prioritise sub-CBFs such as 8.8 Emergency Procurement, 8.5 Inventory & Logistics Coordination, and 8.3 Purchase Requisition & Approval.

• Inventory Status Review:
  • Review current inventory levels and buffer stock availability, especially for essential goods and services.
  • Assess warehouse damage, delivery status, and in-transit shipments.

2. Activation of Alternate Sites and Systems

• Recovery Site Activation:
  • Relocate core procurement staff to the designated recovery site or enable remote access if applicable.
  • Ensure essential equipment (laptops, communication tools, internet access) is operational.

• System Resumption:
  • Activate backup procurement systems or alternate platforms if the primary system is down.
  • Coordinate with IT to restore ERP access and procurement workflows (e.g., SAP, Oracle, or in-house systems).

3. Emergency Procurement Execution

• Launch Emergency Procurement:
  • Initiate expedited procurement procedures as per pre-approved emergency protocols.
  • Use simplified or emergency approval workflows to acquire essential supplies and services.

• Vendor Mobilisation:
  • Contact pre-identified priority vendors with emergency response capability.
  • Issue emergency purchase orders and delivery schedules.

• Temporary Contracts and MOUs:
  • Activate temporary agreements with alternate or backup vendors to fulfil urgent supply gaps.

4. Communication and Coordination

• Internal Notifications:
  • Notify the Crisis Management Team (CMT), senior management, Finance, and end-user departments about procurement recovery status.
  • Provide hourly or scheduled updates on resumption progress and constraints.

• Supplier Communications:
  • Notify key suppliers about the disruption and expected delivery changes.
  • Confirm supplier continuity and realign delivery priorities.

• Logistics Coordination:
  • Coordinate with third-party logistics providers to divert, reroute, or expedite deliveries as required.

5. Procurement Documentation and Records

• Record-Keeping of Emergency Activities:
  • Log all emergency procurement actions, decisions, and communications for audit and post-incident review.
  • Maintain a real-time procurement situation report (SitRep) for operational visibility.

• Contract and SLA Reviews:
  • Review existing contracts to enforce or modify delivery terms during emergency scenarios.
  • Escalate contract breaches or supplier non-compliance to legal or risk management teams.

6. Resource and Workforce Allocation

• Deploy Key Personnel:
  • Assign the minimum required staff to resume procurement activities at recovery sites or through remote platforms.
  • Reallocate cross-trained personnel from non-critical functions to support procurement as needed.

• Monitor Staff Availability:
  • Maintain updated contact and status lists of procurement personnel and confirm availability shifts.

The resumption phase ensures that Bandtree’s Procurement & Supply Chain Management function can regain minimum operational capability within 24 hours of disruption.

By prioritising emergency procurement, restoring systems, activating alternate suppliers, and maintaining communications, Bandtree minimises operational downtime and secures continuity of critical services and resources.

After T+24 Hours (RECOVERY Phase)

Objective

Restore full functionality of the Procurement & Supply Chain Management operations after the initial 24-hour resumption.

This phase focuses on stabilising disrupted processes, validating procurement data, rebuilding supplier capacity, and progressively returning to business-as-usual (BAU) operations while incorporating lessons learned.

1. Stabilisation and Restoration of Procurement Operations

• Resume Standard Procurement Workflows:
  • Gradually reinstate standard procurement procedures, including normal requisition approval flows, competitive bidding, and contract reviews.
  • Clear backlogs of emergency procurement requests processed during the resumption phase.

• Reinstate Non-Urgent Sub-Functions:
  • Resume delayed non-critical procurement sub-functions such as 8.1 Vendor Selection & Prequalification and 8.6 Compliance & Procurement Governance.
  • Begin re-evaluation and approval of vendor qualifications and compliance documentation.

2. Systems & Data Recovery

• Validate and Reconcile Procurement Data:
  • Check for data inconsistencies between primary and backup systems post-disruption.
  • Reconcile emergency purchases and inventory movement records against formal records.

• Restore Full IT System Access:
  • Ensure all procurement systems (e.g., ERP, e-tendering platforms) are operating normally.
  • Resume use of digital platforms for tracking, analytics, and reporting.

• Reinstate E-Procurement Tools:
  • Reactivate procurement dashboards, vendor portals, and automated workflows for full functionality.
  • Resume system-generated purchase orders, contract management tools, and inventory alerts.

3. Supplier and Contract Management

• Reassess and Reaffirm Supplier Commitments:
  • Conduct follow-up with key and alternate suppliers to confirm ongoing capacity and delivery timelines.
  • Document issues faced during the disruption and hold performance review meetings with critical vendors.

• Review and Renegotiate Contracts (if necessary):
  • Amend contract clauses related to delivery schedules, penalties, and force majeure in light of the disruption.
  • Evaluate emergency vendors for potential long-term inclusion in the vendor pool.

• Replenish Inventory and Restock Supplies:
  • Conduct an inventory gap analysis post-crisis.
  • Issue restocking orders to replenish critical stock levels based on usage during the disruption.

4. Communication and Internal Reporting

• Internal Debriefing:
  • Hold structured debriefing sessions with the Procurement Team, Logistics, Finance, and other key stakeholders.
  • Review timelines, issues, decisions, and outcomes from the resumption and recovery phases.

• Executive Reporting:
  • Submit post-incident procurement recovery report to Crisis Management Team (CMT) and senior leadership.
  • Include metrics such as procurement turnaround time, supplier responsiveness, and inventory fill rates.

5. Workforce Transition Back to Normal Operations

• Staff Rotation and Relief:
  • Gradually transition staff from recovery roles back to their original business-as-usual (BAU) functions.
  • Provide rest or relief to over-deployed staff during the crisis period.

• Address Training Gaps and Capacity Issues:
  • Identify training needs observed during the disruption and schedule capacity-building sessions.
  • Refresh team members on standard procurement SOPs and contingency roles.

6. Continuous Improvement and BCM Integration

• Post-Incident Review and Documentation:
  • Document all gaps, lessons learned, and successful practices identified during the disruption.
  • Conduct a Root Cause Analysis (RCA) if the disruption was due to procurement-related vulnerabilities.

• Revise Business Continuity Plans (BCP):
  • Update the Procurement & Supply Chain Management recovery procedures, resource lists, and vendor databases.
  • Refine emergency procurement SOPs and integrate improvements based on experience.

• Engage in Stakeholder BCM Briefings:
  • Share findings and updates with internal departments, key vendors, and external partners.
  • Build mutual contingency plans with high-risk or sole-source suppliers.

The Recovery Phase ensures that Bandtree’s Procurement & Supply Chain Management regains full operational stability, aligns data and contracts post-disruption, and evolves its response framework for future events.

Through systematic restoration, documentation, and improvement, the function ensures resilience and continuity of critical supply chains supporting national infrastructure objectives.

Summing Up ...

The recovery procedure for CBF-8: Procurement & Supply Chain Management provides a robust framework for ensuring operational continuity in the face of disruptions.

Through clear delineation of pre-crisis actions, immediate resumption priorities, and post-24-hour recovery strategies, Bandtree reinforces its ability to protect supply integrity, contract commitments, and procurement compliance.

By embedding proactive planning, critical system support, and defined communication protocols into the recovery process, this procedure enables the Procurement function to swiftly adapt, stabilise, and return to business-as-usual operations.

It also ensures that lessons learned are systematically captured and integrated to improve the organisation’s long-term resilience.

Ultimately, this recovery plan ensures that the procurement and supply chain function continues to uphold Bandtree’s mission of delivering reliable and strategic property management solutions to the nation, even under challenging circumstances.