Urban Healthcare have a dedicated team who specialise supply chain risk. Risk comes form many areas and in particular the most recent world events like COVID19 , natural disasters, acts of war or terrorism, supplier bankruptcy, theft, damage and data breaches create global shifts and dimensions we can’t often forecast.
In a recent Urban Healthcare Global Survey of more than 5000 companies reported more than 75% of companies of their supply chain had at least one supply chain disruption in the past 12 months. This combined with nearly one in five of them went out of business within 18 months. Organisations must develop plans to prepare for, and help reduce, the impact disruptions can have on their bottom line. The first key steps are:
1. Evaluate and Identify Current Risks. Take a critical look at your business and identify areas with risk exposure. Identify and evaluate potential supply chain disruption scenarios and put in place back up systems and suppliers.
2. Prioritize by Probability and Impact. Covering every scenario is impossible, so prioritize potential risks by the likelihood they could actually take place. Then estimate the financial and brand impact of each event. Develop mitigation contingency plans, starting with the most likely and highest-impact risk scenarios.
3. Ensure Supplier Quality. Suppliers can impact your company’s reputation. In addition to ensuring the quality of suppliers’ goods, be aware of how they treat employees, source materials and interact with other partners. Conduct financial due diligence to ensure long-term supplier viability. When it comes to supply chain partners we use and recommend COR Assure ( www.corassure.com )
4. Diversify Suppliers. Don’t rely on one source for materials or products. It’s desirable to source from low-cost locations around the world, but if goods can’t be delivered in a timely manner, your supply chain becomes vulnerable. Establish reliable secondary suppliers in different regions to minimize this risk. Supplier diversity also looks at many other factors. We look at ISO Diversity and Inclusion Audits through Diversity Australia (www.diversityaustralia.com.au) and look at the total Human Capital function of each supplier and their product supply points.
5. Be Aware of Suppliers’ Risks. Be aware of risks your suppliers may face, including regulations compliance, country risk, economic and political conditions or anything that may impact their ability to serve you. This is an ever increasing area with thing like how they manage things like Modern Slavery Laws and Legislation. (www.modernslaverylaws.com)
6. Include Partners in Risk Planning. Work with suppliers, transportation carriers, data management centres and customers to ensure they have disaster recovery and business continuity plans that align with yours. Involving them in risk management planning reinforces their importance as a partner and elevates their role in risk mitigation.
7. Purchase Cargo Insurance. Insurance is important in many facets of life. It should be just as important in your supply chain. Start by understanding that carrier liability is not insurance. Then find a cargo insurance provider who can protect in-transit shipments, as well as warehoused goods, against loss or damage anywhere in the world, no matter the carrier or mode of transportation.
8. Be Transparent with Partners. Share information, such as increased sales projections, and include partners in product design changes. This helps suppliers have the right product available when needed. Similarly, if sales forecasts drop, let partners know that, too. They’ll appreciate the heads up, and it’ll strengthen your relationship.
9. Consider Trade Credit Insurance. Slow-paying or no-paying customers can really impact working capital. Trade credit insurance can protect your bottom line, free-up capital and help secure better financing options from lenders.
10. Review Risks Periodically. Review risk scenarios regularly and identify changes in your supply chain. Preparation is the best way to protect your company from a supply chain disruption.
There is much more to consider. The downstream supply chain efficiently distributes a company’s products or services to its customers. All contracted suppliers, both upstream and downstream, must be proactively managed to minimize financial, confidentiality, operational, reputational and legal risks.
This is why Urban Healthcare is the perfect partner in Healthcare because we have the team, specialisation and the resources to support your needs.