19 checks to evaluate supply risk

| 0 Comments

 

Supply_Risk.jpgSupply risk comes in many forms. You can mitigate one type of supply risk but be victimised by another. The following supply risk checklist, from Next Level Purchasing, can help you identify and prevent common risks of taking on board a critical new supplier.


1. Research the supplier’s reputation.


2. Evaluate the probability of the supplier going bankrupt or experiencing financial challenges.


3. Uncover any supplier plans for new machines, new systems, re-organisation, etc., that could hurt short-term efficiency before productivity gains take hold.


4. Investigate how a safety issue (e.g. fire, explosion, accident, etc.) might disrupt supplier production.


5. Evaluate the likelihood of the supplier’s quality performance not being within acceptable limits.


6. Evaluate the probability of supplier delays (e.g. researching process control, capacity scalability, historical reliability, etc.).


7. Evaluate the probability that the supplier will try to renegotiate pricing owed to input cost increases.


8. Research the probability of port closures and container shortages for ocean shipping, if applicable.


9. Evaluate the probability that the supplier will covertly use prohibited materials (e.g. lead paint).


10. Evaluate the probability that the supplier will covertly use child or slave labour.


11. Evaluate the probability that the supplier will experience shortages of purchased raw materials.


12. Identify at least one secondary source in the event of a failure of the primary supplier.


13. Determine if multiple Tier I suppliers have a sole source relationship with a common Tier II supplier.


14. Evaluate the probability of work stoppages (i.e. strikes) for multiple tiers of suppliers.


15. Evaluate the probability of IP theft.


16. Research the probability of a pandemic influenza outbreak in the supplier’s region.


17. Research the probability of a natural disaster (e.g. proximity to fault lines, hurricane belt, flood plains, etc.) in the supplier’s region.


18. Evaluate the probability of political unrest in the supplier’s country, including uprisings, war or sanctions by your country.


19. Evaluate the probability of new legislation that would require a design or materials change.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Sourcing

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing R 800 000 – R 1.0 million ...More

Sourcing

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing R 800 000 – R 1.0 million ...More

Supply Chain Planner

  • <500 000 >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
 Supply Chain Planner R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner .R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner .R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner .R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner R 350 000 - R550 ...More

Demand Planner.

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Strategic Sourcing
Demand Planner.R 400 000 – R 500 000 ...More

Logistics Specialist

  • >500 000 Gauteng Logistics & Warehousing Permanent Procurement Officer / Specialist
Logistics Specialist,R 400 000 – R 500 000 ...More

Warehouse & Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Warehouse & Distribution Manager.R 550 000 – R ...More

Operations Excellence Manager

  • >500 000 KwaZulu Natal Operations, Planning & Inventory Permanent Supply Chain
Operations Excellence Manager,R 700 000 – R 800 ...More

Operations Excellence Manager

  • >500 000 KwaZulu Natal Operations, Planning & Inventory Permanent Procurement Management
Operations Excellence Manager:R 750 000 – R 850 ...More

Supply Chain Manager

  • >500 000 Gauteng Permanent Supply Chain
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Supply%20Chain/Supply%20Chain%20Optimization%20Manager/TP2004313/MMaR 900 000 – R 1.0 million CTC ...More

Procurement Specialist / Buyer

  • <500 000 >500 000 Permanent Procurement Officer / Specialist
Job Purpose/Scope The role will manage relatively small

Assistant Distribution Center Operations Manager

  • <500 000 Operations, Planning & Inventory Permanent Procurement Management Western Cape
(Total Cost to Company R360K-R420K) .Location: Cape Town.Opportunity ...More

Business Analyst Continuous Improvement Analyst

  • <500 000 Analyst Permanent Supplier / Business Development Western Cape
(Total Cost to Company R550K – R650K)Role: Business ...More

Senior Analyst

  • >500 000 Analyst Gauteng Permanent Projects / Category Management
(Total Cost to Company R600k – R700K) excluding ...More

Demand Planner

  • <500 000 Operations, Planning & Inventory Permanent Supplier / Business Development Western Cape
(Total Cost to Company R500K-R650K) Location: Cape TownThe opportunity ...More

Demand Planner

  • >500 000 Operations, Planning & Inventory Permanent Supplier / Business Development Western Cape
 (Total Cost to Company R500K-R650K) Location: Cape TownThe opportunity ...More

Commodity Specialist

  • >500 000 Commodities Gauteng Permanent Procurement Officer / Specialist
 (Total Cost to Company R500K – R600K) excluding ...More