What could interrupt supply.
WHAT THE RISKS ARE
Supplier failure Supplier capacity constraints Quality failure Transport disruption Border and clearance delays Price movement Currency movement Regulatory change Natural events
WHAT TO IDENTIFY FIRST
Single points of failure.
WHAT THEY LOOK LIKE
One supplier for a critical item One transport route One port of entry One manufacturer, even through several traders
WHY THAT LAST POINT
Multiple suppliers sourcing from the same factory is not diversification.
WHAT TO ESTABLISH
Where materials actually originate.
WHAT TO ASSESS FOR EACH RISK
Likelihood Consequence How quickly you would know How long recovery would take
WHY TIME TO KNOW
Disruption discovered late removes options.
WHAT REDUCES RISK
Alternative suppliers, qualified in advance Buffer stock for critical items Alternative routes Longer-term agreements Local sourcing where viable
WHY QUALIFIED IN ADVANCE
Finding an alternative during a disruption takes too long.
WHAT TO ESTABLISH
At least one qualified alternative for anything critical.
WHAT TO DO
Place occasional orders with them.
WHY
A supplier who has never supplied you will not prioritise you in a crisis.
WHAT TO MONITOR
Supplier financial health News affecting your sources Regulatory changes
WHAT TO ESTABLISH
What you would do if each critical supply failed.
WHAT TO DOCUMENT
That plan.
