When the next disruption occurs, can you count on your key vendors and suppliers? Follow these steps for better third-party resilience planning.
The global economic disruptions of 2020 revealed the myriad ways that businesses depend on third-party vendors and suppliers – and on what happens when they fail to deliver. In some cases, supply chain interruptions brought companies’ production to a standstill. In others, customer service call centers temporarily shut down as their vendors transitioned to remote work.
But some companies fared better with their vendor relationships. Their business continuity planning efforts considered not only their own ability to weather disruptions, but also the resilience of their third-party ecosystem of vendors and suppliers. They had effective ways of communicating both with their third parties and with their customers, and as a result, they improved their reputation and brand.
Such proactivity is a major takeaway for business resilience in 2021. Organizations also need to look beyond their walls and invest in strengthening third-party relationships. They should analyze whether the business continuity plans of their third parties match the detail and scope of their own.