Managing Disruptions In The Supply Chain

For many organizations, the COVID-19 pandemic has been a wake-up call to the importance of supply chain planning in managing business continuity risk related to contract management. With disruptions in the global supply chain, businesses have had to reassess their risk management processes and identify ways to safeguard their operations. Now today’s world faces a different kind of supply chain disruption. Where the previous crisis hit globally the conflict in Ukraine shows a different element as well, the risk of your hidden supply chain (the supplier of your supplier so to speak).

In both cases a key area that has come into focus is supply chain planning. By ensuring a robust supply chain plan is in place, businesses can better manage the risk of disruptions and minimize the impact on operations. This involves identifying and addressing vulnerabilities or risks that could impact the supply chain, as well as developing contingency plans to respond to potential disruptions. This management requires you to manage over the borders of your own organization and that will require contractmanagement to reach out further then one step in the value chain.

Contract management also plays a critical role in ensuring business continuity. By reviewing and assessing contracts with suppliers and partners, businesses can identify and mitigate risk factors that could impact operations. This can include identifying alternate suppliers or partners, renegotiating contract terms, or developing contingency plans to manage disruptions.

By addressing potential risks and ensuring contingency plans are in place, organizations can better manage disruptions and maintain business continuity.

Arjen van Berkum

Arjen van Berkum is a columnist, keynote speaker and motivator, with an eye for business ecosystems, innovation and disruption. In addition to his work as technology and contract management evangelist, he is a visiting lecturer at Delft University of Technology (TU Delft).