Suppliers

Negotiating supply chains and new alliances checklist

The complexity of modern supply chains, often global in their nature, means that they are particularly vulnerable to geopolitical events like coronavirus, which impact different parts of the world at different times.

Local supply chains can also be disrupted by such global events, with an increase in demand for locally sourced goods and services across multiple industries leading to changes in price and availability.

This checklist sets out the questions you should ask yourself as you try and secure your business’s supply chain in the immediate, medium and long term.

The Chartered Institute of Procurement and Supply (CIPS) has also provided a number of helpful resources, including webinars and podcasts, helping to explain these important issues.

Supply chains checklist

Do you have a comprehensive understanding of who all your suppliers are and assess their ability to meet your existing agreements in the current situation?
Do you know if your suppliers create the goods or components you buy from them, or whether they rely on others?
If you have found that a supplier is no longer able to serve the needs of your business, do you know how to terminate the contract without incurring any late fees?
If you require new suppliers, do you know where to look, and who is able to help you?
Have you considered what issues new suppliers might be exposed to?
Have you assessed the immediate and medium-term impact on demand for your products and services?
Do you have a way of forecasting further fluctuations in demand in the long term?
Do you have competitors, are you able to work with them to secure access to the products and services both your businesses need?
Are you able to shorten your supply chain to mitigate further impact from geopolitical events?