Your Supplier’s Disruption Is Your Disruption

Read Time: 4-minutes

Are you prepared to handle sudden supplier setbacks? If not, you could face long delays, unhappy customers, and a damaged reputation.

Knowing how to manage supplier risks can make all the difference between business failure and success.

Many businesses still act as if their suppliers’ problems will never affect them. This old way of thinking is dangerous.

 If your main supplier cannot deliver on time, your whole operation grinds to a halt. You might lose money, disappoint your customers, and risk future orders. That’s why you must accept that your supplier’s disruption is your disruption and do something about it now.

Supply chain problems do not end with your supplier. They can cause late shipments, higher costs, and even lost contracts. Smart companies face this truth head-on. They do not just wait and hope for the best. Instead, they build robust systems that can handle disruptions without major damage.

“By Failing to Prepare, You Are Preparing to Fail.”

– Benjamin Franklin

The UK faced a significant example of this in 2021 when there was a sudden shortage of CO2.

CF Fertilisers, one of the main CO2 producers, halted production, leading to a severe drop in raw CO2 supply. As you can imagine, British meat processors, soft drinks manufacturers, and breweries rely heavily on CO2 to package and preserve their products.

Within days, meat processing lines slowed down, and beverage companies faced serious pressure to meet demand. The shortage cause disruptions in production schedules, triggered higher costs, and led to concerns about empty supermarket shelves. Ultimately, the UK government had to step in to support production and keep the supply chain moving.

I reference this story as it shows how one single raw material shortage can ripple through multiple industries, proving that if your supplier can’t deliver, your whole business can suffer.

A recent study found that 72% of companies faced supply chain disruptions in the past year, and 60% reported financial losses due to supplier failures. Another stat shows that businesses with a diversified supplier base recover 42% faster from supply shocks. If you rely on only one or two key suppliers, you could be next in line for costly setbacks.

If you want to protect yourself from supplier disruptions, here are five steps to consider:

1.      Audit your supply chain: list all your suppliers and check if any part of your process depends heavily on one source.

2.      Develop supplier redundancy: have a backup for each critical material or ingredient. If one supplier fails, another can step in.

3.      Enhance visibility: use digital tools to track shipments and forecast demand. Staying informed helps you spot delays early.

4.      Strengthen contracts: add clauses that protect you if a supplier fails to deliver. Make sure penalties and risk-sharing rules are clear.

5.      Build stock buffers: keep enough critical items in reserve to handle short-term shocks. This might cost a bit more, but it can save you in an emergency.

I know what you might be thinking though:

“It’s too expensive to set up backup suppliers.”

Yes, having more than one supplier can increase upfront costs, but the expense of a complete supply chain breakdown is usually far greater.

“It’s difficult to build new relationships with suppliers.”

It may require time, but strong supplier partnerships are vital. With modern technology, you can find reputable suppliers faster. Building these relationships now will help you avoid last-minute panics later.

“I don’t have time to track everything.”

Modern software can automate much of the tracking. Even basic supply chain management tools can give you early warnings so you can act before small problems grow.

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So, there you have it…

If you do not protect your supply chain, you risk delays, higher costs, and unhappy customers.

You are only as strong as your weakest link.

By auditing your suppliers, adding backups, and keeping an eye on early warning signs, you turn a fragile chain into a strong network. This level of resilience not only helps you avoid losses, but it also builds trust with your customers. In a market where reliability matters, a robust supply chain can become your best-selling point.

I would love to hear your experiences with supply chain disruptions – both successes and struggles. Leave a comment on the original post or send me a message with your biggest challenges or any tips you would like to share.

If you want more tailored advice, reach out so we can discuss specific steps for your business. Ensuring your next supply chain hiccup is nothing more than a small bump in the road.

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Thanks for reading, and see you next week.

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