COVID-19 Safe Supplier Operating Standard - Part One


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.?



Powered by