Russia-Ukraine Crisis: Supply Chain Questions Every Manufacturer Should Consider
The invasion of Ukraine by Russia, and sanctions imposed on it for doing so, threatens to rock global supply chains that have already been strained by COVID-19. Many companies are being forced to rethink how they source materials. Those who currently source from this region have been forced to move operations or switch suppliers. But it’s not just supplies normally sourced from Russia and Ukraine that are at risk. Second-order impacts resulting from the conflict are expected to create challenges to global supply chains.
About the only thing that’s certain is that these challenges are going to increase for the foreseeable future. As such, now is the time to stress test your supply chain and pursue strategies to make them more resilient to risks. You can start by considering the questions below.
- Have we identified our key suppliers and how are we staying up to date on their status?
- Which suppliers are critical to the continuity of our business?
- What plans are in place to continue operations if a key supplier ceases to exist?
- How many alternate suppliers do we have on call, and what is our relationship with them?
- What, if any, investments should we consider making in order to support key suppliers?
Scenario Planning / Risk Assessment
- How do different scenarios impact our supply chain? Which are most likely? Which do we need to take immediate action on?
- What is the financial impact of the worst-case scenario for a supply chain failure, and how has that potential impact changed during the current Russia-Ukraine crisis?
- What impact will the increased costs associated with supply chain delays have on our business?
- What secondary risks may stem from a major disruption to the supply chain?
- Are insurance options available, in case developments locally or internationally interrupt our supply chain?
- Should we establish a temporary committee to develop and assess supply chain risk models?
Catalyst Connection is here to help if you need assistance assessing the risk to your supply chain or building a more resilient supply chain. Don’t hesitate to reach out to Eric MacDonald or Connie Palucka.