There’s five critical steps that organisations should take to assess the resilience of their third-party suppliers, says Supplychainbrain.com
- Conduct regular business resilience assessments. Assessments aren’t a one-and-done project, but rather should be performed regularly to ensure that vendor practices are up to date.
- Avoid concentration risk. Originating in the banking industry and adapted for use across multiple sectors, concentration risk describes the level of risk in an organization’s supply chain due to concentration in a single industry, geography or partner. The risk comes from a lack of diversification in the vendor portfolio.
- Monitor business events. One of the most frequently observed gaps in supply-chain risk-management practices is the over-reliance on cybersecurity assessments. Assessing a vendor’s cybersecurity posture is absolutely essential in order to gain visibility into its security practices.
- Enable third parties to proactively update you on events.
- Keep your own business continuity plan up to date. Up to this point the focus has been on suppliers, but building a business continuity plan requires the coordination of multiple resources, both internal and external.
Do you require help to assess the risk in your vendor portfolio? With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on vendor management and your daily component requirements.
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