You may need to use water but you can prevent holes in your pipes and leaks in the system by managing your plumbing system. The same is true of supply chain management. When was the last time you reviewed your supply chain and the various tiers which support your operation? Man-made disaster, natural disaster, international terrorism and socio-political disturbance can all interfere with your business and its ability to make a profit.
Loss of critical supplies hits profitability and reputation. Simply reducing risk is no longer effective. The key to survival is focusing on resilience. Insurance industry statistics indicate that from 2011 onwards the cost of natural disasters and their associated impacts has increased and now costs hundreds of billions of dollars a year in both insured and uninsured losses. Globalisation and the interconnection of supply chains can mean that one small issue in Japan could cause catastrophic shortages of vital supplies in the USA.
The Business Continuity Institute (BCI/BSI) Horizon Scan Report of 2016 placed supply chain disruption seventh in its top ten risks. This highlights the significance of the issue on a worldwide level. All businesses, large or small, need to ensure they understand and maintain their critical factors of production. Whether you are a service provider, a real estate developer, an online entrepreneur, an oil producer or refiner, you will have a supply chain. Making sure you understand that chain and being fully prepared for various types of interruption is vital to ensuring your long term survival. Awareness and development of appropriate responses to the implications of business interruption are vital if you want to stay ahead of competitors and maintain or improve performance.
Have you employed advisors before to help you confirm the root of your key operational supplies? An independent and objective assessment of threats and exposure can really add value to your business whilst providing leading practice solutions to any identified issues. Developing and maintaining an enterprise-wide understanding of supply chain resilience is fundamental to ensuring the long-term viability and sustainability of your business.
Moore Stephens has the experience and expertise to help you develop and utilise the right tools to protect and strengthen your supply chains. Our Assurance team can put you in the driving seat and help you spot the potential supply chain weaknesses which could put you and your business in jeopardy. A dynamic approach to forecasting combined with an agile approach to sourcing is a key way to protect and develop your business.
For more information about how Moore Stephens can help you, please see the attached brochure or contact Sarah Hillary