STATE OF FLUX
Health and availability of supplier workforce 01 Key question > Is the supplier following relevant standards as set out by their local government or standards bodies? What employee checks are they doing? > Can they scale up when lockdown finishes? How do you check?
Recommendation > Put supplier management processes, policy, and procedures in place. > Train staff in supplier management techniques (using virtual delivery when in lockdown) > Rapidly deploy supplier management technology to manage the supplier relationship, performance, contracts, and risks. > Ensure communications are open and honest on financial stability, and ensure reviews and communication frequency is appropriate. > Review and potentially shorten payment terms. > Initiate an internal contingency plan looking at alternative (local) sources of supply? Recommendation > Require that suppliers upload contingency plans to your supplier management platform. Recommendation > Segment suppliers based on the risks they present to the business. > Request suppliers provide self-certified data on what actions they are taking to mitigate risks, including employee checks, including employee checks? > Track all supplier interactions (meetings etc.) > Ensure suppliers have KPIs and they are being completed, tracked, and managed.
> How structured are the discussions with your suppliers? Will they continue after lockdown? > How do you know they are performing? Are you tracking the right supplier KPIs?
02 Financial viability of the supplier Key question
> Can the supplier continue to operate? How do you know? > Are they impacted by other customers’ financial viability? If so, who, and how much? > How frequently and to what extent are you checking your suppliers’ financials and their customer contracts? How are you helping them? > Have you investigated alternative (local) sources of supply?
03 Organisational preparedness Key question
> Pandemic risks are usually looked at from an internal view only - do you have the same risk view for suppliers? What contingency plans are place? > Are staff trained in supplier management techniques? Have you measured your capability? > What technology is being used to manage the supplier relationship, performance, contracts etc.?
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COVID-19 SAFE SUPPLIER OPERATING STANDARD PART ONE
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