How are you handling COVID-19?


The COVID-19 outbreak is first and foremost a tragedy affecting hundreds of thousands people. It is also causing the biggest disruption in decades to economies and businesses across the world. State of Flux
12 years of global annual research shows that most organisations are significantly exposed when it comes to supplier risk management, specifically pandemic risks.

We are working closely with organisations globally to help them position their business to be resilient in the current situation, as well as dealing with future impacts on their supply chains. Why the COVID-19 outbreak is not a "typical" business continuity risk, and which characteristics make it far more serious?

COVID-19 is not a “typical” business continuity risk


  • It was sudden in nature and escalated quickly
  • It has a universal impact on business irrespective of industry or location
  • The number of people and businesses affected is extremely high
  • It brings far reaching effect on national and global infrastructure


Only 7%
 

of organisations
include
pandemic risks
in their risk management
scenarios/planning

State of Flux research

 

Only 26%

of respondents have effective risk management in place for 75-100% of their key suppliers

State of Flux research

 

 45%  of respondents
have effective risk management in place for up to 50% of their key suppliers

State of Flux research

 


What are the supplier risks generated by COVID-19?

1  Health and availability of supplier workforce 

2  Financial viability of the supplier 

3    Organisational preparedness

4    Social distancing requirement 

5  Ports and airports closure, airlines at skeleton operation levels 

6  Risk of spreading the virus via physical products 

7   Demand shocks

The longer you wait to deploy supplier management the greater the risk impact


You may think your organisation is good at managing suppliers but for the last 12 years our annual global supplier management research has shown that only 9% of organisations would be considered ‘leaders’ in supplier management. Find out how good your supplier management processes are.

Request a benchmark


How to deploy at speed?

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Watch on-demand webinar

COVID-19: Implementing supplier management at speed in times of crisis

Watch webinar

 

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Contact our team of experts

to discuss any aspect of your supplier management

Contact us
 

Supplier management technology

Accelerate risk management with SupplierBase

SupplierBase

Find out more

State of Flux' SupplierBase platform is designed to facilitate the onboarding and management of suppliers, to maximise value and reduce risk. The platform integrates with third party risk information providers to monitor supply chain, regulatory and cyber risks, and will increase your ability to:

  • Accelerate your supplier segmentation by risk exposure
  • Agree treatment strategies for each risk segment

Online supplier management training

Manage risks in times of crisis

Our highly modular training programme can be quickly tailored to deliver in-house programmes to help procurement teams understand contract management, risk management and supplier joint account planning as part of the procurement life cycle. Every topic, activity, and exercise has a clear line of sight into the day-to-day life of a procurement professional. We have adapted our one-day SRM fundamentals training to an online programme delivered in 3x two hour targeted sessions.

LP_risks_training-2

Contact us


Now live! State of Flux 2020 global research
Supplier management at speed

This is the 12th consecutive year of conducting global research; it's never been more important to understand how supplier management is helping mitigate current supply chain challenges. Over this time we've had more than 2,000 organisations participate and collected over 2 million data points. The survey is open until Friday 29th May.

Upon completion of the survey request a free benchmark and analysis of your responses so you can understand how good your supplier management processes are against your industry peers.

Complete survey

 

Launch2020-Survey-Supplier_Management_at_risk

 


About State of Flux


Headquartered in London, with offices in the United Kingdom, United States and Australia, State of Flux has been supporting clients in procurement for over 15 years
.

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