Posted on: 28 September 2021
Is your business at risk?
While lean production has become a cornerstone of successful supply chain management and a way for businesses to stay flexible and responsive to changing tastes in their markets, the dependence on and relationship with suppliers resulting from outsourcing and minimising stock creates a host of exposures.
Successfully navigating and managing the risks presented by a supply chain that spans across regional and national territory is a complicated endeavour considering the countless precarious factors that can cause disruptions across the entire supply chain.
As a business owner it’s never been more important to ensure you have an effective supply chain in place, to help improve efficiency, reduce costs and increase profitability. However, currently there are numerous external challenges which are causing huge supply-chain havoc.
Over the past few weeks we’ve seen numerous journalists reporting news headlines all related to the disruption or extension of critical supply chains:
Reducing your exposure
One of the most important things is to stay abreast of every development in your environment. Fortunately, there is a growing body of best practices for risk management across the supply chain which could help you.
Business Interruption insurance cover is just one type of insurance protection which is designed to cover you for the loss of profit following a disruption to your trading activities. If you have business interruption cover then now’s a great time to review this with your insurance broker to ensure you’re protected. Consider:
- What could be the length of the disruption if your supply chain was impacted?
- Are you holding more stock on site to enable you to trade?
- Is your indemnity period long enough?
If you haven’t insurance in place you could look to transfer your risk by purchasing the appropriate cover, which could include the following, depending on your exposure mix and risk tolerance:
- Business Interruption
- Marine and Cargo cover for long voyages taken by commodities, components and finished products
- Liability cover, including Commercial Public/Products Liability, and Directors and Officers Liability
- Other special endorsements specific to your exposures
Engaging supply chain partners and insurers in your effort to minimise supply chain risk and regularly reassessing exposures can help you to successfully manage your business’s risk from beginning to end of the supply chain. Premierline can help you every step of the way so contact us today to get started.
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