Expect the unexpected: It’s a mantra that should be adopted by every supply chain manager. Since globalization has altered the cycle of manufacturing and the majority of time the raw materials/supplies, manufacturing facility and customer all reside thousands of miles away from each other, our supply chains are extremely vulnerable to manmade and natural incidents that can halt normal business operations. The continuity of your business is dependent on your ability to keep supply chains open, manufacturing running and clients supplied. The best way to do this is to include your supply chain in your business continuity plans.
A thorough supply chain business continuity plan addresses how your business will respond and recover from as many potential threats as possible including natural disasters, theft and even computer hacks. As part of the plans, be sure you have conversations with each supplier so that there is a business continuity plan in place that allows for your company to get what it needs even if that supplier experiences an unexpected interruption. This includes plans for backup suppliers and manufacturing locations. Supply chain managers should also consider how long the business can withstand an outage from their current suppliers.
When your organization runs drills to test their business continuity plans, suppliers must be involved. At the time of the drills, be sure to conduct an on-site evaluation of how suppliers managed the response. Your business continuity plan then must be updated based on what was learned during the drills.
Benefits of Business Continuity Planning with your Suppliers
When you include your suppliers in your business continuity plans, they become a true partner in your business. Your business will have a much more robust business continuity plan in place that proactively manages risks and will ultimately minimize the impact of incidents. You will have a much better chance of maintaining operations during a crisis, while you will preserve a resilient reputation to your clients and business partners.
We work hand-and-hand with our clients to develop business continuity plans and set up tools to make your company resilient. When you need a partner who can navigate through the essential elements in business continuity planning, give us a call at 877-833-7763 or contact us online.
How have you made plans to ensure your supply chain is safeguarded when faced with a business-halting event?