LUFASCO INC

Business Continuity Plan

Preparedness, resilience, and operational continuity. This plan outlines the processes and safeguards Lufasco has in place to maintain critical operations during unexpected disruptions.

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Business Continuity Plan

Last Updated: 6/1/2026

Purpose

To ensure Lufasco maintains critical operations, protects assets, and fulfills customer commitments during and after a disruptive event.

Scope

This Business Continuity Plan covers:

Warehousing and inventory management
Logistics and transportation
Customer order fulfillment
IT systems and data
Employee safety and communication
Vendor and supplier coordination

Objectives

Minimize downtime and financial losses
Ensure employee and stakeholder safety
Maintain customer trust and service levels
Recover critical operations within 12 hours
Comply with legal and regulatory requirements

Risk Assessment

Risk	Likelihood	Impact	Mitigation Strategies
Natural Disaster	Low	Medium	Daily offsite server data backups, critical backup inventory maintained by supplier
Supply Chain Disruption	Medium	Medium	Diversified supplier base, safety stock, established secondary sourcing on critical items
Cyberattack / Data Breach	Medium	Medium	Firewalls, encryption, daily backups, employee cybersecurity training
Power Outage	Medium	Medium	UPS system for critical computer infrastructure, cloud-based IT infrastructure
Key Personnel Loss	Low	Medium	Cross-training, documented SOPs, succession planning
Transportation Failure	Medium	Low	Multiple carrier agreements, alternate delivery methods, company vehicles

Critical Business Functions

Function	Priority	Recovery Time Objective	Responsible Team
Order Processing / Fulfillment	High	2 Hours	Sales, Operations & IT
Inventory Management	High	4 Hours	Warehouse Team
IT Systems (ERP, WMS)	High	2 Hours	Software Provider & IT
Customer Communication	High	8 Hours	Customer Service
Logistics / Delivery	High	8 Hours	Warehouse & Logistics
Financial Operations	Medium	8 Hours	Accounting, Financial Institution

Business Continuity Strategies

Preparation

Data Protection

Maintain daily backups of ERP, WMS, and customer data to secure cloud servers.
Test data restoration quarterly.

Inventory Resilience

Keep safety stock for high-demand products, such as an 8-week supply.
Establish agreements with secondary suppliers for critical parts.

Facility Readiness

Equip warehouses with backup generators and fire suppression systems.
Identify alternative warehouse locations for emergency use.

Logistics

Contract with multiple carriers to avoid reliance on a single provider.
Maintain a list of local third-party logistics providers for backup.

Workforce

Cross-train employees on critical roles, including warehouse operations and order processing.
Develop a remote work policy for office-based staff.

Communication

Use a mass notification system, such as email or SMS, for employee updates.
Maintain an updated contact list for employees, vendors, and customers.

Response

Incident Assessment

Activate the BCP team within 1 hour of disruption.
Assess the scope, impact, and duration of the incident.

Employee Safety

Evacuate facilities if unsafe and follow emergency protocols.
Account for all employees through designated coordinators.

Communication

Notify customers of delays or disruptions within 4 hours.
Provide vendors with updated delivery schedules.

Activate Backup Systems

Switch to cloud-based IT systems or secondary servers.
Redirect operations to a backup warehouse or third-party logistics provider if needed.

Recovery

Restore Critical Functions

Prioritize order fulfillment and inventory tracking.
Resume IT systems using restored backups.

Replenish Inventory

Expedite orders from secondary suppliers.
Adjust safety stock levels based on lessons learned.

Customer Recovery

Offer discounts or expedited shipping when appropriate to retain customer trust.
Communicate transparently about recovery timelines.

Post-Incident Review

Conduct a debrief within 1 week to identify gaps.
Update the Business Continuity Plan based on findings.

Roles and Responsibilities

Role	Responsibilities
BCP Coordinator	Lead plan activation, coordinate teams, and communicate with stakeholders
IT Manager	Ensure system backups, restore IT operations, and address cybersecurity threats
Operations Manager	Oversee warehouse and logistics recovery and manage inventory
HR Manager	Ensure employee safety, manage communications, and coordinate remote work
Customer Service Lead	Handle customer inquiries and provide updates on orders and delays
Finance Manager	Manage emergency funding, track financial impacts, and process insurance claims

Communication Plan

Audience	Method	Frequency	Responsible
Employees	Email, SMS, phone calls	Immediate, as needed	HR Manager
Customers	Email, website updates	Within 4 hours, daily	Customer Service Lead
Suppliers	Email, phone calls	Within 6 hours, as needed	Operations Manager
Regulatory Authorities	Formal reports, as required	Per legal requirements	BCP Coordinator

Training and Testing

Training

Conduct annual BCP training for all employees.
Provide role-specific training for BCP team members.

Testing

Run tabletop exercises bi-annually to simulate disruptions such as cyberattacks or warehouse flooding.
Test IT backups and restoration processes quarterly.
Update the BCP after each test to address weaknesses.

Maintenance

Review and update the BCP annually or after significant operational changes, such as a new warehouse or IT system.
Ensure contact lists and vendor agreements remain current.
Document lessons learned from any disruptions to improve future responses.

Appendices

Contact List: Employees, vendors, customers, and emergency services.
Vendor Agreements: Contracts with backup suppliers and third-party logistics providers.
IT Backup Protocols: Step-by-step guide for data restoration.
Insurance Details: Coverage for property, inventory, and business interruption.

Contact Information

Lufasco Inc.
1367 Buford Business Boulevard, Suite 500
Buford, GA 30518
Phone: (678) 575-0656
Website: www.lufasco.com