Do you depend on a key supplier? Can you say yes to all these questions?
Understand your supplier
· How much do you really know about your suppliers?
· What evidence do you have to support your appraisal of their financial / legal / technical status?
· When was the last time you verified or validated the evidence?
· Are they operationally stable?
· What is their position in their own market niche, segment or sector?
· What do their competitors think of them?
· How resilient is their own downstream supply chain and how do you know?
· How will you know if the position changes?
Understand your dependence on your supplier
· What role do they play in your business?
· How dependent are you on them?
· What will it cost you if they fail?
· Do you have a contingency plan?
· What are the alternatives and how would you make a change?
Let your supplier know about you
· How strong is your relationship with your suppliers?
· How much do your suppliers know about you?
· Have you shared your business plan with your suppliers?
· Would they know enough about your business to recommend new services and products that could add value?
Have good information
· Do you have a strategy for managing supplier information?
· Is the information your suppliers provide reliable and how do you know?
· What evidence do you ask for in support of the information supplied?
· Is it up to date and can you access it readily?
· How often do you review it?
· Do you have an early warning system?
· How often do you scan the landscape in which you operate?
· What do you do with the data, information and knowledge acquired?
· How have you assessed the operating risk to your business?
· How resilient is your supply chain and when did you last check?
· What are the sources of risk to your supply chain, e.g. downstream demand, upstream supply, environment, etc?
· What are the risks to your supply chain and do you understand how they could impact your business?
· How effective are you at identifying, assessing and controlling risk?
· When were your business continuity / disaster recovery plans last tested and did they include your supply chain?
If you had a problem answering these questions or you would like a review of the risk and resilience of your supply chain by consultants who have provided these services in both the public and private sectors please contact us