5 Is there a need to do supply chain analysis?

The short answer is yes.

All businesses do some form of supply chain analysis, whether it is the ‘make v buy’ decision, choice of supplier or forming a strategic alliance. This analysis may include some of the following considerations:

• Management and collaboration effort;
• Operational costs;
• Capacity to meet market demands;
• Location of facilities;
• Reputation;
• Standards.

When we take climate change into account the supply and demand network can also change. These services and infrastructure also affect not only the supply of inputs and product deliveries, but also the ability of workers to reach the workplace, or customers to access the business. Thus it is now necessary to take other considerations into account. Here are three major considerations:

• Is there a disaster recovery plan which allows for business continuity?
• Do suppliers have sufficient adaptive capacity?
• Who are your backup suppliers?

More information is available on these websites:

• Case Study – Innocent on product carbon labelling. [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] Their engagement throughout the supply chain led to carbon savings and lower costs;
• Advice from Business Link on How to make your supply chain greener;
• Logica on supply chain impact.