Thoughts on Business Resilience in the Supply Chain

Business Resilience in the Supply Chain

During my time initially as the Chief Risk & Continuity manager for a global telecomm’s corporation, and more recently as an independent Business Resilience consultant, I have experienced a developing focus on the increasing risks in the supply chain. This has in turn led to an understanding of the serious weakening these risks pose to an organisations resilience.

I have found that all too often this increase in risk has developed as a direct result of the extensive outsourcing pursued by many businesses and organisations seeking to streamline structures and reduce costs. Whereas before a CEO could, if needed, have a direct hand in dealing with a crisis affecting an internal supplier, for example the companies Facilities team, with this now outsourced to a contractor, who may have themselves in turn outsourced specific parts of this work, getting direct action on issues can be extremely challenging at best.

Earlier this year a report of the 2010 Business Continuity Management Survey has been published. This survey conducted by the Chartered Management Institute, in association with the Cabinet Office, has many interesting aspects and shows the benefits to an all-hazards approach to Business Continuity Planning.

Amongst its important recommendations are “An organisation is only as resilient as the external stakeholders it relies on. Driving BCM though the supply chain is important for any organisation wishing to improve its resilience.” And “Managers need to recognise that effective BCM does not stop at the organisations doorstep.”

A free copy of this report and a BCM Checklist can be downloaded from: http://www.managers.org.uk/research-analysis/research/current-research/BCM2010

Strengthening the resilience and competitive advantage of UK PLC by improving the resilience of the supply chain is imperative for the UK.

As the country struggles to fight its way out of the recessionary abyss so it’s dependency upon the ability of its organisations to supply the goods and services it requires becomes more and more essential. The enormous increase in outsourcing performed by many of these organisations has resulted in a huge reliance upon the reliability and resilience of their now extended supply chain.

Customers need complete reliance on their suppliers who in turn need to demonstrate that they are resilient enough to continue business even when confronted with a crisis.

Submitted by Colin Ive MBA MBCI

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