In these changing economic conditions it is vital to harness surety of supply and value; as it is likely that competent suppliers and sub-contractors will not have an issue securing work moving forwards, it will be their ability to service the request which will be key.
The top five vulnerabilities of any supply chain, are generally acknowledged as:
- Reliance on oil
- Availability of shared data and information
- Fragmentation along the value chain
- Extensive sub-contracting
- Supplier visibility
Whilst there are a number of approaches to risk and supply chain management which could be used, the following bullet points summarise the main activities which we believe deliver tangible improvements:
- Concentrate on the most critical supply to the projects
- Target the right supplier intelligence
- Encourage stakeholders to take protective action
- Increase supplier information sharing among
- Internal stakeholders
- Reduce supplier resistance to information sharing
To facilitate the above risk management and enhance resilience in the supply chain, we develop bespoke frameworks based on the following four principles:
- Technology – use and expand data sharing platforms
- Strategy-develop adaptable strategies for supply chain resilience
- Policy – create a multistakeholder risk assessment process
- Partnership – harmonise, develop and adopt
Fundamental to all of the above is the ability to build scalable supplier development and management programs that allow you to understand market capability and capacity, utilise suppliers’ full scope of competencies, improve their performance and achieve customer of choice status.
All of which will lead to being better positioned than your competitors to deal with and even gain advantage from the changing market conditions.