Identifying supply chain exposure is important….especially in the uncertainty of Brexit. Here are seven important questions to consider for your business.
Supply chain management is inherently difficult, especially in the age of Brexit and other global political upheaval. The extent of supply chain risk can vary depending on sector, company and well beyond first tier suppliers. Protecting your supply chain and having contingency processes in place can reduce business impact should difficulties occur.
- Are any aspects of your business impacted by single-source suppliers or one key customer?
- Do any single-source suppliers or key customers impact five percent or more of your revenues?
- Can these suppliers or key customers be readily replaced with alternates that provide the same pricing, quality, quantity, delivery and revenue stream?
- What is the time frame to replace single-source suppliers or key customers? Has a business continuity plan been developed and tested?
- What is known about the exposures present at your key supplier and/or customer sites?
- What business continuity plans are in place at your key supplier and customer sites to help you avoid a significant supply chain disruption?
- Are there any contingency contracts in place in the event of a supply chain disruption? Have they ever been tested?
Once you’ve answered the above questions you can begin to evaluate potential alternatives should something happen along your supply chain.
It maybe that you consider a different or increase suppliers (if required) or keep more immediately available stock.
If as a business you are reliant on one key supplier for your good(s) or service(s) you need to be in a position to easily mitigate supply chain disruption and have the right insurance in place. This maybe that you request higher supply chain coverage for you key supplier(s) should your supply chain let you down.