Risks in the Supply Chain: Grasp the Nettle!
4 May 2021
With the challenges of Covid-19 and the EU Exit, business leaders are painfully aware of the crucial part played by supply chains as they fight for the success of their enterprises.
Hardly surprising as businesses of all sizes are experiencing the fallout: delays in delivery, price increases and shortages of supply. The disruption is made worse by multi-geography, complex supply chains. In some cases, people have travelled far in search of low-cost sources which are now costing them dear. The further away things are, the harder it is for you to understand your supply chain.
But even UK supply chains are not exempt given the terrible and unpredictable impact of the pandemic on our workforces and our mobility.
The most dangerous risks are the ones unknown to you. Understanding the links in your supply chains has become a number one priority for those components and services which are critical to your business.
A lot is being written about digital solutions to the problem and there is no doubt this plays a role. However, there is much that can be done, and indeed which needs to be done in any event, which requires the human touch.
Upskill your business by learning the lessons of the last twelve months and by being better prepared.
The time is right to:
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Focus on your critical suppliers
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Understand their supply chains
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Manage any risks they pose to your business
The link below is a great example of a care home adopting a pragmatic approach to managing risk when facing a crisis. They managed costs, shared risk with providers, paid promptly and showed amazing team spirit and resolve.
Why a Care Home Provider put its Procurement Strategy 'on hold' - Supply Management
They knew the challenge was to get hold of PPE that met the need, quickly and in unprecedented volumes along with thousands of other organisations, all with the same objective.
The home worked closely with their existing suppliers and grew their knowledge of alternative providers. They instigated a quality assurance process that assessed products before any purchase was made, guaranteeing that each delivery could meet the needs of staff and clients, and most importantly, would be used.
