Building a More Resilient Supply Chain

Know what is critical

Segment purchases by operational importance, supply difficulty, shelf life, value and substitution options. Map at least the direct supplier and, for critical items, important upstream dependencies. Maintain usable data on lead times, order status, quality incidents and delivery performance.

Choose proportionate safeguards

Options include an approved alternate supplier, agreed substitutions, safety stock, staggered orders, route alternatives and preventive maintenance. Test whether each option can work in practice. A second supplier is not a real backup if it depends on the same factory, port, vehicle or single approval.

Apply risk-based due diligence

OECD guidance describes a process to identify and assess adverse impacts, prevent or mitigate them, track results, communicate and support remediation where appropriate. Adapt checks to the item, country, supplier and risk. Make expectations clear in onboarding and contracts, then follow evidence rather than relying only on declarations.

Learn from disruption

When a delay or quality failure occurs, record the cause, customer impact, response time and effectiveness of the contingency. Update forecasts, supplier reviews and response plans. A short review after each significant event turns disruption into better operating knowledge.

Practical takeaways

• Map critical dependencies
• Test backup options
• Use evidence-based supplier reviews

Sources and References

• Due diligence for responsible business conduct — OECD

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