COVID-19: supply chain considerations

From Rachael Kallis, Procurement Manager:

In light of concerns regarding the outbreak of the coronavirus (COVID-19) disease, many companies are considering business resilience within their organisations and supply chain.

If subcontractors are being used to provide services or goods in support of one of your projects, please consider the risk to successful project delivery, in the event of a more significant outbreak.

Areas for consideration include:

  • Are your subcontractors able to work remotely?
  • Are alternative resources readily available from within Frazer-Nash or alternative suppliers?  
  • Could a project be re-structured or re-planned in the event of an outbreak to minimise disruption?
  • Are you effectively managing your risk log?
  • Are you reliant on key individuals?

If you foresee risks within the supply chain for your project, I would recommend you start an open dialogue with your critical subcontractors.

Many organisations, including our clients are requesting that we provide information around business resilience, should the spread of COVID-19 impact our business. If you need to request information from one of your suppliers, this word template can be used as part of your communication.

There may be some temptation for respondents to suggest everything is in order. I’d suggest with our smaller, niche subcontractors; it may be more valuable to have an open and honest verbal dialogue to understand where any gaps and risks exist, which should be subsequently documented and held on file. This will allow us to plan for different eventualities and demonstrate robust risk management practices to our clients.

Enabling functions are also in the process of considering the supply of critical corporate goods and services procured directly for Frazer-Nash. Should you have any additional questions regarding this issue in respect of project procurement or corporate procurement, please contact me.