Plan for Ongoing Supply Chain Disruption
Consistent and reliable access to necessary resources is imperative for organisations to maintain regular operations and provide optimal services and products. Supply chain issues can lead to significant financial and reputational losses.
In recent months, organisations in the UK and around the world have faced a number of issues affecting supply chains, including labour shortages, transport delays and a lack of materials. These problems have been exacerbated by rising demand for various products, such as consumer goods and construction materials.
With these challenges in mind, employers need to assess and address any potential shortcomings regarding their supply chain processes. Consider the following steps:
- Choose suppliers carefully, and conduct regular audits and inspections to ensure their commitment to preventing business interruption matches your own.
- Verify suppliers’ insurance cover.
- Define contract scopes clearly with the assistance of specialised legal professionals. Consider indemnification, hold harmless and defence agreements.
- Re-evaluate worksheets regularly to account for global events, changes in the market or your business model. Consider the threat of developing risks, such as cyber-warfare and climate change.
- Establish formal plans to be implemented in the event of supply chain issues. These may include a business continuity plan, geographical diversification of servers, relocation plans and the utilisation of alternate suppliers.
- Investigate the versatility of supply chain partners. Some may have multiple locations and be better equipped to maintain operations in the event of a disruption.
- Transfer risk by working with an insurance broker to understand your exposures and acquire appropriate cover.
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The Insitute of Supply Chain Management is the first international institute to represent the interests of the wider supply chain - their aim is to set standards and promote best practice to help improve the industry. More information can be found on their website.
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