It’s always important to manage your supply chain continuity and risks, but this is particularly relevant in times of economic downturn or instability.
You only have to think of some of the big names that have disappeared recently as a result of the credit crunch and the recession to realise that we can no longer assume that even the largest of our suppliers’ businesses are as robust as we’d like them to be.
Depending on the sector you are in, the impacts of supply chain failure can range from irritating to catastrophic. So it’s important that we understand these impacts and, where possible, mitigate the risks through contingency planning or other means.
Whether you have an established supply chain or are considering outsourcing certain functions, you’d be wise to consider seriously your own particular supply chain dependencies and carry out some targeted business impact and risk assessments.
And I’d advise that you do so sooner rather than later. There’s enough doom and gloom around at the moment. Don’t add to it by overlooking the effect that someone else’s misfortune could have on the continued well-being of your company.