A host of risks at different points in the supply chain can prevent a business from receiving the service or product it expects — from disruption to transport networks, to natural catastrophes, international trade disputes and man-made disasters.

In a world where customers expect high standards of service, business interruption due to supply chain problems can be very costly.

Organisations that rely on overseas suppliers face greater risk.

Such suppliers can be disrupted via a range of locally-related issues barely considered by managers, such as labour disputes, polluted natural resources or corruption.

At the same time, the fact that supply chains are lengthening and becoming more international in nature, with multiple production sites, means that there are many more potential points of disruption in the chain.

Critical questions you need to consider

• Have you identified your particular business processes that need to be protected before, and restored during, a supply chain breakdown?

• Are you overly dependent on one or two suppliers?

• Have you identified alternative sources of supply in the event of a supply chain breakdown?

• Do your suppliers meet standards of ethics and social responsibility, and do they comply with local regulations?