Your organisation—regardless of size and industry—most likely relies on at least one supply chain to support its operations.
However, as supply chains are an interconnected system, a disruption to just one link could have significant and detrimental effects. To ensure that you are not caught unaware, here are the top eight risks to be conscious of in 2017:
1. Road conditions. Depending on road conditions—such as roadworks, an accident or the quality of the road— delivery drivers may be delayed, items may be damaged, or your order could even be lost.
2. Weather. Inclement weather can slow down delivery drivers, cause shipping issues and delay trains.
3. Fire. Warehouses and other storage buildings are susceptible to fire hazards. If a business connected to your supply chain does not properly manage its fire risks, you could face a long-term disruption.
4. Heat. Items—such as food, chemicals and pharmaceuticals—can be sensitive to shifts in temperature. If these items are not properly stored and shipped, they can be spoiled or ruined by the time they arrive.
5. Cyber. Cyber-criminals can access carriers’ documentation systems, steal lorry drivers’ identities or reroute the delivery to a location of their choosing.
6. Theft. Whether your delivery is travelling by road, rail or sea, there is the chance that criminals could intercept and steal it.
7. Coveted cargo. Depending on what items—especially high-end electronics— are being delivered to your business, your supply chain may be an attractive target for criminals.
8. Business failure. The failure of a key supplier to your business is one of the biggest exposures you could face. Checking the financial creditworthiness of suppliers can help here.
To mitigate potential risks to your supply chain, verify what your suppliers’ insurance covers and have a rapport with alternative suppliers in case you need a substitute. In addition, contact Bollington to better understand the extent of your risk exposures, and to see if business interruption insurance might be beneficial in ensuring your risks are covered as widely as possible.