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Support Your Supply Chain Or Suffer Consequences: Here's How

From the drive-through window to the supermarket shelves, businesses are suffering at the hands of broken supply chains. Earlier this year, the fast-food chain, KFC, disappointed customers across the country when they temporarily closed hundreds of stores due to a chicken shortage. 

Currently, food and drink manufacturers are experiencing tough times from the carbon dioxide shortage, leaving pubs, grocers and butchers empty-handed. These companies aren’t alone—65 per cent of organisations across the globe experienced at least one supply chain interruption last year, according to a recent survey by the Business Continuity Institute. 

In light of these events, it is vital to equip your organisation with proper supply chain and business continuity planning. Follow these practices to keep your supply chain strong and continue operations during disaster: 

  • Develop a supply chain risk management framework by answering the following questions about your organisation:
            o Who are your critical and high-risk suppliers?
            o What are the potential impacts of supply disruption?
            o Where are potential vulnerabilities in your supply chain?
            o Are all key risks managed effectively in your supply chain?
            o Are your employees promoting value-enhancing activity?

  • Create a risk monitoring routine by participating in ‘horizon scanning’, which entails identifying early warning signs of disruption in your supply chain and implementing mitigation strategies before the disruption becomes severe.
  • Categorise your suppliers on a scale of ‘risk to revenue’. This practice will keep you aware of which suppliers pose the greatest threat to production, as well as which offer the most benefit.
  • Develop strong relationships with suppliers to ensure quality communication at all times—especially in the event of any supply chain disruption problems.
  • Update your supply chain risk management plan at least once a year to stay informed on any major changes or potential for future disruption. Remember: your supply chain can change at any time.

In addition to developing a robust supply chain, it is important to possess a strong business continuity plan and purchase appropriate cover in the event of a disruption. Contact ICB Group today if more guidance on business continuity planning and/or cover is required.

T: 01784 608 100

The content of this Profile is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.

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