Business World

Just in case

- By Tony Samson

WHO can forget the Y2K bug which spawned expensive consultanc­ies on the premise that the computers would reset all the data to 1900 when the millennium was crossed to cause plane crashes, stuck elevators, crashed bank deposits, and lost files? The biggest surprise was that nothing happened. And countries like Russia that disregarde­d the dire warnings racked up savings on Y2K consultanc­y costs and had the last laugh.

Contingenc­y planning, or a “just in case” mindset can be costly.

Insurance companies and sellers of fire extinguish­ers promote the notion of over-preparedne­ss. (City ordinances back up fire prevention measures.) Their “what-if” scenarios are powerful marketing tools to sell products or services for unlikely events taking place.

A “just- in- case” approach can be costly, meant to overcome any foreseeabl­e contingenc­y, including the unlikely ones. This is best illustrate­d in packing for a trip. The first- time traveler can be identified with her bulky luggage which includes attire for all sorts of weather, possible invitation­s to parties, and even food in case the airplane haul is not enough to tide her over the first night at her cousin’s place.

When moving to a new house, this just-in-case attitude pops up. While staunchly proclaimin­g her skepticism about Feng Shui, the housewife nonetheles­s scrupulous­ly follows the prescribed layouts and orientatio­n, placement of the stairs, hanging plants to counter design flaws on the windows. She quickly demurs when criticized for the costs she is racking up — I just want to avoid bad luck… just in case.

The cautious attitude seeps through corporate thinking as well. Layers of control are ordered in case of internal collusion. Because of this suspicious­ness, Filipino corporatio­ns may have the biggest internal audit and security

When moving to a new house, this just-in-case attitude pops up. While staunchly proclaimin­g her skepticism about Feng Shui, the housewife nonetheles­s scrupulous­ly follows the prescribed layouts and orientatio­n, placement of the stairs, hanging plants to counter design flaws on the windows. She quickly demurs when criticized for the costs she is racking up — I just want to avoid bad luck… just in case. department­s in the world. ( Why for ordering extension cords, stand-by do stores all have their own security generators, and a tent in case it rains. guards? To take the temperatur­e of the Inventory management has introduced customers?) efficienci­es and cost-reduction

The introducti­on of compliance with “just in time” ordering to free rules on knowing your customer (KYC) up storage space and eliminate excess and anti-money laundering rules has inventory. This approach has been even increased the contingent of internal taken a step further by retailers. They control. People whose only job is to have done away with storage space watch other people to ensure they are altogether and expanded selling space. doing their jobs are considered necessary… All the products are stacked in active just in case of collusion. shelves for the shopper so that if it’s not

In these times when on-site parties on the shelf, the product is simply not involving more than five people are no available. And artificial intelligen­ce longer feasible except for the police notes the emptying of shelves and reorders celebratin­g birthdays, the just-in-case items for re-stacking. The new mentality of party hostesses is given a science of supply chain management rest. Or is it? There is no need for RSVP tries to bring contingent inventory as no one is expected to show up at the levels close to zero. house. Does this bring down the cost “Just-in-time” dealing with crisis of hosting? is a low-cost approach to risk. Being Not at all. jolted out of one’s comfort zone unprepared There are now e-parties where up to allows us to learn life’s lessons to a hundred participan­ts can join from adjust to the new normal. And this has all over the world. And those in the been going on for seven months now. environs may be sent food trays and Of course, there are prayers and the drinks in their own homes, just in case consolatio­n of friends (though not financial they want to join the e- celebratio­n subsidy) that get us through life, from their homes. E-drinking has become along with a dwindling bank balance. If fashionabl­e. It sounds better in we get through this health and economic the vernacular as “e-numan.” Cheers. crisis, where can we go for a trip.... just in

A person who thinks of possible case we are still able to? contingenc­ies is good to have on one’s team. She is the one who will have the first aid kit when someone cuts his finger in the out-of-town event. She also breaks the budget for the event

 ??  ?? TONY SAMSON is Chairman and CEO, TOUCH xda ar.samson@yahoo.com
TONY SAMSON is Chairman and CEO, TOUCH xda ar.samson@yahoo.com

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