The discovery of Avian Flu on British shores has brought the risk of a worldwide flu pandemic sharply back into focus. And while 150,000 turkeys prepare to meet their maker, business leaders across the world are doubtless becoming increasingly nervous.

And although a global flu pandemic would have far-reaching effects on the business world at large, the procurement sector is likely to feel the effects more dramatically than most.

Back in July, Ariba ’s Northern Europe mark eting director, Paul Hampton, analysed the potential effect that avian flu could have on supply chains for ELP , and delivered a stark warning.

“Companies should explore diversifying its sources of components or manufactured goods, so they have a fallback in case a country has to close its borders, or negotiate contingency agreements with carriers in the event a route or a mode of transport is put off-limits,” Hampton said.

“Planning, visibility of suppliers and robustness of these agreements is the first order of businesses to assure supply chain flexibility and resilience. If you wait for the emergency itself, it'll be too late.”

So with the H5N1 virus apparently having hitched a ride from South East Asia to Europe’s doorstep, what are business leaders doing about the threat? Comparatively little according to a study carried out by ELP and global supply chain specialists State of Flux in July 2006. The survey found that just one-in-three companies have prepared themselves for the risk of an outbreak of a human form of bird flu, which is hardly encouraging at a time when a huge number of companies are actively sourcing goods and labour from companies in South East Asia: still the most likely location for any pandemic flu outbreak to begin.

The Department of Health’s UK Influenza Pandemic Contingency Plan, identifies a number of major risks to business and alongside the massive potential for the disruption of supply chains across the world, the report warns that fuel shortages and subsequent problems with distribution channels and staff shortages will pose enormous problems for even the most well-prepared companies.

As if that wasn ’t enough, the report suggests that in addition “to maintaining continuity of their work, badly affected businesses will need to consider, for example, the security of premises, including manufacturing plants.”

With this in mind, and with the next pandemic flu outbreak apparently getting closer with each passing day, the ramifications of last week’s events will reach far beyond a turkey farm in East Anglia (UK).

And whether companies are ready to react, if and when, a pandemic does arrive, remains to be seen.