Sample Control 1595:
Strategy for dealing with supply chain disruption

The Board has agreed a strategy for reducing the impact of supply chain disruption. This includes:

  • Segmenting the supply chain depending on the volume of the product required and volatility of demand – this includes sourcing high-volume basic products from multiple low-cost suppliers, and, where feasible, establishing multiple sources for lower-volume items
  • Seeking local suppliers where possible to reduce transport costs and reduce the exposure to disruption in global supply chains
  • Achieving an appropriate balance between reducing the number of suppliers to improve efficiency and maintaining alternative suppliers to reduce dependence on individual firms – ensuring that services could be maintained despite a medium-term disruption to the supply of a key component, even if this is considered very unlikely.