Supply Chain Management Checklist

Title Page

Risk Management and Risk Mitigation

Risk Management

Do you understand the implications to your business if one (or more) of your suppliers are unable to deliver product/s to you?
Do you know where your raw materials/parts/purchased products are coming from?
Have you mapped your supply chain (key suppliers) to identify the locations and movements of your procured goods/raw materials?
Do you know how your suppliers (and their suppliers) are being impacted by current global issues?
Do you know what the logistics route looks like for your supply chain?
Have your significant suppliers undertaken a similar assessment of their supply chain?
Have you reviewed contracts with critical suppliers–liability (i.e., supply shortage/delivery), contingency, operational continuity clauses, duty cost, and other taxation liabilities?
Have you considered how global issues can affect existing/future contracts–rebates, consignment stock, and payment terms, among others?

Have you identified risk mitigation actions?
Have you identified contingency supply options (i.e., are there alternative suppliers and/or manufacturing facilities that could be called upon) and if so, do you know how quickly and at what cost?
Have you reviewed all your suppliers?
Are alternative transport/logistic routes available?
Do you have a process to monitor future global crisis hotspots in your supply chain to mitigate future disruptions?
Have you thought of business continuity/contingency plans if there is a future wave of a global crisis/a limited-warning notice of return to restricted conditions?

Inventory Management and Supply Chain Management

Have you contacted customers to establish future demand/requirements?
Have you identified existing inventory levels, particularly key inventory, components, parts, etc.?
Do you know if you are carrying too much inventory?
Do you have a process in place to minimize the cost of carrying too much inventory?
Have you identified components and raw materials that will have the highest impact on revenue/cash?
Do you effectively manage your inventory to prevent over-stocking/stock-outs?
Have you identified proactive actions to address potential/anticipated shortages?

Do you have contracts in place for key suppliers?
Do you have Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) in place for your key suppliers?
Have you looked at opportunities to retender your purchases?
Have you implemented a structured cost reduction program across purchased goods and services?
Do you understand the key costs in the business and which can be influenced? (i.e., bundle of communication services, service contracts, consumables, stationery, food, etc.)
Have you reviewed how much you spend per supplier and rationalized your supply base?
Have you consolidated purchases to leverage additional cost reductions/supply?
Is there an opportunity to leverage collaborative buying power?
Have you looked at opportunities to collaborate with other businesses to reduce your distribution costs?
Have you looked at how you can forecast more effectively?
Do you have an adequate IT system and do you use it effectively?
Have you looked at opportunities where you could work with your customers to take cost out of the product/service?
Have you identified and evaluated re-shore or near-shore options to enhance your supply chain?