COVID-19 How can businesses mitigate risk in their supply chain?

  • Published on: 24 March 2020
  • By: Victoria Heritage

Is your business prepared?

Coronavirus (COVID-19) is at the forefront of all of our minds and we are naturally concerned about the health and welfare of our friends, family, colleagues and clients across the UK and globally.

Right now it is about ensuring we are all doing the right thing and building stability across our organisations, customers and supply chains.

Of course the current coronavirus (COVID-19) outbreak has the potential to disrupt every aspect of supply chain. Disruption can bring opportunities to renegotiate favourable terms, but your key consideration at the moment should be business continuity. Immediate attention to your supply chain will help ensure your organisation survives the event, and emerges on the front foot as the situation improves.

We face an extraordinary situation which may result in a protracted business downturn. Your supply chain is an ecosystem and the health of one part can have an amplified effect on others. We advise reviewing the financial standing of your suppliers and the potential impact of their failure. This is especially important where you identify strategic suppliers that are key to the success of your business.

So, what can you do?

            1. Conduct due diligence on key suppliers / critical providers

            2. Start early dialogues and look for innovative new ways of working

            3. Have frank conversations with customers and suppliers to ease
                cash-flow and secure longer-term commitments (win:win)

            4. Remain positive and flexible

We encourage open and honest dialogue, ensuring we work together now and in the future to build more collaborative relationships reflecting how reliant we all are on each other.

In these unprecedented times, we feel it important to offer our skills and expertise and help businesses to mitigate risk. 

On this basis, we are offering a free phone consultation with one of our procurement consultants to help you do just that.