Today’s post is part three of my continuing journey through the Swedish handbook titled “Säkra företagets flöden” or”Secure the company’s flows”, as I have translated it. This part takes a look at a checklist or questionnaire that can be used in assessing disruptions risks in your suppliers or sub-contractors. The following checklist is not meant to be exhaustive, but serves as a gateway or teaser towards asking more in-depth questions, specifically suited towards your own company in the issues you yourself are facing.
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General information
Name of supplier/contractor:
Products/services delivered:
Point of contact:
Disruption risk: – Consequences (on a 1-5 scale) – Probability (on a 1-5 scale)
Alternative suppliers/contractors:
Supplier skills and knowledge
What does the supplier provide?
– Manufacturing? – Design and Development? – Development and manufacturing? – Single services? – Long-term maintenance? – Other…?
What skills does the supplier have as to
– Product manufacturing? – Product design and construction? – Product testing and prototyping? – Research and development?
What is the standard of quality as to
– Facilities, buildings, workshops? – Equipment? – Other infrastructure (IT, electricity, etc.)?
What do we know about the suppliers standing in the market
– Largest customers? – Reputation, goodwill, customer relations? – Future development plans? – Economical outlook? (e.g. annual reports of the last 3 years)
Risk management
What is the company policy on risk management (RM)?
– Is the there a dedicated RM-team? – A set company policy? – Rules of confidentiality?
Does the supplier has a set policy for
– Quality? (e.g. ISO-certified?) – Environment? (e.g. ISO-certified?)
How is fire safety established?
– On-site fire department? – Alarm? – Sprinkler? – Handheld fire extinguishers? – Training? – HES-rules?
Are the facilities secured against penetration?
– Fences, walls, gates, access points? – Access control systems, CCTV?
How is the equipment protected?
– Protection of important tools/moulds? – Alternative equipment on stand-by or easily transformed? – Current status of equipment is well documented? – Proactive or reactive maintenance plans? – History of outages? – Fully or partially insured?
Capacity
Does thes supplier have sufficient capacity
– For the next 12 months? – For the next two years? – For the next five years?
What is our share of the supplier’s total capacity?
– How many other customers are there? – What is their share?
Kan supplier capacity be limited by disruptions in/failures in/lack of
– Personnel? – Raw materials? – Equipments? – IT? – Other?
Is there any reserve capacity?
– Overtime? – Business partners? – Extra shifts?
Who are the most critical sub-suppliers?
– Can they increase their output?
Disruptions and consequences
What happens if…
– A fire or other disaster destroys the supplier’s facilities? – Key equipment fails? – Key personnel quits?
How long does it take…
– Before the supplier is back to normal operations? – Before the supplier can deliver as planned? – Until the supplier is at half capacity? – Until the supplier is at full capacity?
What insurance coverage does the supplier have?
– For his assets/equipment/facilities? – For liabilities? – For other disruption consequences?
Conclusion
The suppliers ability to handle increased demand:
…
The suppliers ability to handle disruptions:
…
The most critical factors:
…
Countermeasures:
…
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As I said above, this list is not exhaustive, but it is meant to be a starting point, designed for shortlisting the most critical suppliers for further investigation. I’m not sure my translation is 100% correct, as business jargon is always difficult to translate, so comments and suggestions for improvement are always welcome.
That was the checklist. My next post will deal with and describe in more details several strategies for managing supplier risk.
Reference
Giertz, E., et al. (1999) Säkra företagets flöden, Silfgruppen, Stockholm. ISBN 91 7097 056-4
Related
- husdal.com: How to secure your supply chain – 1/7
- husdal.com: How to secure your supply chain – 2/7
- husdal.com: How to secure your supply chain – 3/7
- husdal.com: How to secure your supply chain – 4/7
- husdal.com: How to secure your supply chain – 5/7
- husdal.com: How to secure your supply chain – 6/7
- husdal.com: How to secure your supply chain – 7/7
