- April 1, 2020
- Posted by: aquiliti
- Category: Business Continuity, COVID-19, Procurement, Risk Management, Supply Chain
Given the massive disruption COVID-19 is having, it is now more important than ever to have a clear view of potential risks to your supply chain. Our ability to look at all the suppliers we are dependent on is difficult but one thing we do know is that the likelihood of delays or disruption is increasing every day.
4 Practical steps you can take
So how can we be proactive and get prepared for these risks eventuating? Here are four practical steps to help with your business continuity planning:
- Use a ‘heat map’ approach to help you look at your expenditure, identify critical areas of risk and prioritise where your focus needs to be
- Work with your stakeholders regularly to try to forecast demand in the short-term (and what is driving it!)
- Identify the dependencies in your current supply base, understand whether those suppliers are in a position to continue to supply and what alternatives are available
- Talk to your suppliers….tell them what pressures you are feeling; they may have some great ideas that can help you and vice versa
Strong supplier relationships are now critically important, particularly those with your SME’s. Much like individuals, organisations need to come together to support each other. Larger organisations need to increase their awareness and communication with SME’s in their supply-chain and to work with them. Cashflow will become a priority and large organisations can look to support the long-term viability of SME’s by paying invoices on time(or sooner), giving certainty on future business (both up and down) and by seeing what else they can do for you.
Each organisation and industry is different but being flexible and agile with our suppliers where possible will only benefit everyone in the long term.
If you’d like some help with managing your supply chain please reach out to us. [email protected] or +61 9262 1995