Operations & Systems
One supplier, one point of failure.
Relying on a single good supplier is natural and often works for years. The risk is that you only notice it on the day they close, change terms or cannot deliver. This session helps owners see where they depend heavily on one source, estimate what a failure would cost, and take practical, affordable steps to reduce the exposure without giving up a good relationship.
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Dependency is not wrong. Unexamined dependency is.
A long relationship with one reliable supplier often gives better price, priority and flexibility. Spreading orders thinly can cost more and weaken that relationship. The question is not whether to depend on a supplier but whether you have looked at what that dependence would cost you if it ended.
Business continuity and wider risk are broader subjects. Here the focus is limited to suppliers: who you rely on, how exposed you are and what simple steps reduce it.
What the session covers
31 topics across 6 areas. Six steps from seeing the dependency to acting on it.
Mapping Who You Depend OnList inputs, not just names.5
- Materials, goods, services and software you cannot do without
- Who supplies each, and what share comes from one source
- Single-person suppliers and small vendors
- Suppliers that also compete with you
- Hidden dependencies: transport, packaging, a single wholesaler
Estimating the ImpactWhat would happen, in practice, if it stopped?5
- How long you could carry on from stock
- Which customers and orders would be affected first
- How quickly a replacement could be found and tested
- Cost of switching: price, quality, retraining, paperwork
- Ranking dependencies by impact and likelihood, using your own judgement
A rough estimate in rupees and days is more useful than a precise one that never gets made.
Reading the Warning SignsSuppliers rarely fail without hints.6
- Delays that are becoming more frequent
- Quality drift or changes in materials
- Requests for advance payment or earlier payment
- Unreturned calls and staff turnover at the supplier
- Price increases without explanation
- Changes in ownership or product range
Practical Ways to Reduce DependenceLow-cost steps first.6
Illustration (hypothetical): a small packaging unit buys its main raw material from one trader. It places one small order a quarter with a second trader, so that if the first fails, the second already knows the specification and has been tested.
- A qualified second source for the most important input, even at a small share of orders
- A buffer of the items with longest lead times
- Standard specifications so substitutes are easier
- Sharing forecasts so the supplier can plan
- Agreeing notice periods for price or product changes
- Keeping samples and specifications of alternatives on file
Keeping the Main Relationship HealthyReducing risk is not the same as walking away.5
- Telling a key supplier honestly about a second source where appropriate
- Paying on time to remain a valued customer
- Regular conversations, not only orders
- Recognising when dependence runs both ways
- Avoiding exclusivity unless you understand the cost
Deciding What to AcceptSome dependencies are worth keeping.4
- Comparing the cost of reducing a dependency with the cost of the risk
- Choosing a few priorities, not all of them
- Writing the decision and the date to review it
- Triggers that would change the decision
Reducing every dependency is impossible. Choosing which ones to leave alone, on purpose, is part of the work.
What participants leave with
- A supplier dependency map for their business
- An impact and likelihood worksheet
- A supplier early-warning checklist
- A second-source starter plan for one input
- A date and a named person to review dependencies
What this session is not
- A full business continuity or insurance workshop
- Advice on supply-chain finance or trade credit
- A suggestion that owners should drop their long-standing suppliers
- A forecast of any particular market or industry
How the session runs
Participants list the ten inputs their business cannot run without, mark the supplier of each and the share from one source, and estimate how long they could manage if it stopped. The group works through a hypothetical case of a supplier failing, then each participant chooses one exposed input and plans the first step to reduce it. No participant is asked to name suppliers to the group.
What your students leave with
- A map of the suppliers and inputs their business depends on most
- A rough estimate of what a delay or loss of each would cost
- A list of possible alternatives for the most exposed inputs
- A decision on which dependencies are acceptable and which need action
- An early-warning list of signs that a supplier may be in trouble
- One concrete step to reduce a dependency in the next month
Scheduled sessions
Nothing scheduled yet
Sessions are arranged with a college once a date is agreed. Ask us and we will find the right person for it.
A student rather than a college? See what is coming up, or ask your placement team to host this.
Find the supplier you cannot afford to lose, and make one move before you need to.
Tell us who your students are and what stage they are at. Sessions are free for participants.