When it comes to effective procurement, one of the most important strategies to address supply chain risks is to build relationships with reliable and quality suppliers. This means having an in-depth understanding of their capabilities, processes and performance, as well as regularly auditing and monitoring the processes of all associated suppliers.
Other strategies may include:
• Establishing clear protocols for managing supplier relationships and risk management;
• Setting up contingency plans for every stage of the supply chain;
• Using early warning systems to detect any issues;
• Building a dynamic system that can quickly respond when changes occur;
• Establishing contracts that incorporate objectives, timelines and milestones;
• Evaluating product specifications, production methods and cost structures;
• Using digital platforms to further enhance communication and collaboration.
By using these essential strategies to address supply chain risks, you can create robust, safe, transparent and successful procurement processes.