I hope that you have enjoyed the article “Supply Disruptions Don’t Have To Be Fatal.”
In the article, I talk a lot about the importance of contingency plans. But perhaps the most important thing about a contingency plan is how you communicate it.
If circumstances leading to a supply disruption require the contingency plan to be executed, its effectiveness will be judged in hindsight which is, as they say, 20/20. You don’t want to be judged in hindsight.
So it is vital to have senior management advised of the contingency plan before it is ever needed. If it is judged unfavorably after a supply disruption, the critics will say that:
- It didn’t mitigate the problem fast enough
- It didn’t account for the quantity needed
- It was too costly
- Or any number of jabs
If senior management is advised of the contingency plan before it is needed, they can offer direction. Perhaps being aware of the potential cost of the problem will make them more willing to invest in more inventory, or a second supplier charging a higher price, or smaller, more frequent shipments, or whatever.
The bottom line is that you are a part of a team. Developing your contingency plan in isolation may take you out of alignment with corporate strategies and can serve to make you the target for blame if things go wrong.
Share your contingency plan. Supply disruptions are a company problem, not just a purchasing problem.
Please note that the Purchasing Certification Blog will be working on its tan for the rest of the week. It will be back in action next week.
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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