Your suppliers
Is your business in danger from weak suppliers?
Will my supplier let me down?
It's simply the difference between this -
"Yes we had a fire over the weekend. But we have arrangements to work elsewhere and alternate stock supplies. Your deliveries will happen as normal. We won't let you down."
And this -
"Yes we had a fire over the weekend. Bit of a nightmare really. There's just no way we can deliver your stuff. It'll be a while before we are up and running again. Sorry."
- They say "sorry" to you.
- You say "sorry" to your customers.
- Your customers say "hello" to your competitors.
So how can I find out how well prepared they are? (Their business continuity arrangements.)
Use our Continuity Check questionnaire to ask the right questions about what precautions and plans your suppliers have in place. (Never underestimate the risks other people are taking with your business).
Ask the right questions about their:
- Information - do they have back up copies?
- People - what if key staff are absent?
- Equipment - what will happen if their equipment fails?
- Premises - how will they deal with fire/flood/vandalism?
They may be new suppliers or ones you have been dealing with for years. What's important is how they will cope with the disruption that hits them out of the blue tomorrow. It is perfectly acceptable and highly professional to ask them about their business continuity arrangements.
You will receive a report in plain language and jargon free. You will need no prior knowledge or training in business continuity to understand the report.
But what if I don't like what I find?
Then make things better.
The Continuity Check generates a report with practical suggestions, examples, information, products and sources of advice. Use it as a negotiating tool, a spur to action or to start a conversation with your suppliers about how you can work together to protect each other's business.
And is this due diligence only for suppliers?
No.
In business we are all connected. Use the Continuity Check to assess any organisation that could have a major effect on your business -
- Customers
- Partners
- Neighbours
- Outsourcers
What if I feel uncomfortable asking them to do the Continuity Check?
Don't be. Because if the supplier fails the following would be a lot more uncomfortable:
- telling your customers you can't deliver
- explaining your failing business to staff
- explaining your failing business to the bank manager
- paying penalties or fines for someone else's mistake
- trying to get out of contracts
- negotiating with a new supplier when they know you are desperate
- trying to get a new supplier when you and your competitors all try to switch
- higher insurance premiums if you need to make a claim
- legal expenses and going to court
(But of course we understand that good business relationships are precious. You can always do the Continuity Check on yourself and then apply your knowledge to your supplier or customer).
How do I use the Continuity Check?
- You OR or your supplier buys a login for the Continuity Check - £59.99
- Supplier is given login
- Your supplier fills in the questionnaire.
- You examine the report.
"A staggering 68% have not assessed their suppliers' ability to deal with major disruptions. Despite this, 30% have suffered a business interruption as a result of a supplier or customer failure, and had a 'lucky escape' from its consequences."
Still not Prepared? 2006, Marsh Ltd in conjunction with The Continuity Forum.
"..by failing to ask suppliers for evidence of business continuity arrangements, organisations are putting themselves and those they supply, at risk."
2006 Chartered Management
Institute (CMI) Business Continuity
Survey, supported by the Cabinet
Office (CCS).