Secure your Supply Chains

Prepare for and overcome future shocks to the supply chains your business depends on. 

Supply chain resilience is crucial for business success in today's global environment. Changes in the global economy, geopolitical environment and climate have increased the frequency and magnitude of both demand and supply shocks to industry globally.

Businesses need a strong understanding of potential risks to their supply chains to build robust resilience strategies into their business models. By prioritising resilient supply chains, businesses can minimise disruptions, maintain customer trust, preserve financial stability, and gain competitive advantages in increasingly uncertain global markets.

These are some key steps your business can take to build more resilient supply chains:

• supply chain mapping: Build full picture of suppliers and geographies, focusing initially on strategic items. The more you understand your business supply chains and their complexities, the better you will be able to foresee potential issues and prepare
• identify vulnerabilities: Consider the potential vulnerabilities at each stage of the procurement journey. Use the information to classify risks, identify early warning indicators and possible timescales within which the risks may materialise or last
• apply actions: There's no 'one size fits all' model, but these may include diversification, stockpiling and creating surge capacity, onshoring, or collaborating with complementary organisations
• implement and review: You should put in place an implementation timeline, ensure plans have senior endorsement, and regularly review and revise so plans advance and adapt to changing circumstances

Read more guidance on how your business might approach supply chain resilience and aspects to consider under each step.

Supply Chains Resilience Framework

When it comes to identifying potential actions for your business to take, the Supply Chains Resilience Framework highlights 5 options to consider to strengthen long-term supply chain resilience. These are not mutually exclusive and often a combination may be required.

Diversification: Identify alternate sources of supply to create flexibility in the supply chain.

International Partnerships: Work with international partners to identify common challenges and strengthen the resilience of international supply chains and systems.

Stockpiling and Surge Capacity: Identify where it may be beneficial to hold stocks or strategic reserves of components or goods which are vulnerable or at risk.

Onshoring: Identify whether increasing or expanding domestic capacity might be helpful in reducing risks.