Mothers’ day, one of the busiest days of the year for florists. Marks & Spencer have been criticised by it’s customers for using package delivery firm Yodal. A very unloved, struggling company which has been in the news on a number of occasions for hurling boxes over fences and delivering unwanted items.
Having hopefully done diligence on on their suppliers, have M&S done enough to ensure the operational and reputational aspects of it’s supply chain?
So what should you be looking for?
- Demand Risks – unpredicted or misunderstood changes in demand.
- Supply Risks – interruptions to the flow of product, whether raw material or parts, within your supply chain
- Environmental Risks – from outside the supply chain; economic, social, governmental, and climate factors
- Business/Financial Risks – supplier’s financial or management stability, or purchase and sale of supplier companies
- Supplier Operational Risks – supplier’s physical facility, regulatory compliance, quality assurance practices and processes.
- Reputational Risk – When a news story brakes you have a shared reputation at stake. Customers don’t care that it wasn’t your fault.
- Holistic Risk – … Ok it’s not really a category on it’s own but because of the systemic nature of supply chain risks, a problem in one area can easily affect the entire supply chain and the entire organisation.