Continuity of Supply
Manage risks associated with continuity of supply from external sources, including oversight of the wider supply chain/ecosystem.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Continuity of Supply at each level of maturity.
- 1Initial
- Practice
- Best endeavours of available personnel.
- Outcome
- There is no visibility of supply risks.
- Metric
- Historical Analysis: # IT supplier incidents
- 2Basic
- Practice
- Implement a process to monitor tactical events (short-term dips in availability or quality, unexpected price inflation, etc.) in IT services, the rest of the business and IT suppliers.
- Outcome
- There is some limited visibility of short-term risks.
- Metric
- % of contracts where tactical events are monitored
- Practice
- Define high-level contingency plans for arranging alternative sources in the event of an order being unfulfilled.
- Outcome
- There is a reduction in time required to arrange alternative sources, if required.
- Metric
- % of outsourced IT services that have contingency plans or alternative service providers in placeHistorical analysis: supplier delivery failures impacting availability
- 3Intermediate
- Practice
- Implement a process to monitor medium-term operational events and issues (dependence on single suppliers for specific products, frequent order and specification changes from the rest of the business, recurring product quality issues, etc.).
- Outcome
- There is increased visibility of medium-term operational events and issues.
- Metric
- # of events/issues identified % of contracts where medium-term issues are monitored historical analysis: operational events impacting on business
- Practice
- Establish arrangements in advance with alternative suppliers for most important products/services which can be activated if required.
- Outcome
- Arrangements are in place to utilize alternative sources at short notice if required for the most important products/services.
- Metric
- % of outsourced IT services that have contingency plans or alternative service providers in placeHistorical analysis: supplier delivery failures impacting availability
- 4Advanced
- Practices
- Ensure that continuity and integrity of supply risk evaluations include addressing strategic objectives, such as information-sharing/collaboration, supplier innovation, evolution of supplier rivals, and the impact of discontinuous innovations.
- Focus on long-term strategic issues which could potentially impact the rest of the business (e.g. supplier insolvency, key product discontinuation, ineffective information-sharing/collaboration, low supplier innovation, legislative changes, evolution of supplier rivals, etc.).
- Outcomes
- Continuity and integrity of supply risk evaluations increasingly address more strategic objectives.
- There is high visibility of longer-term strategic issues.
- Metric
- % of contracts where long-term issues are monitored
- Practice
- Prepare detailed contingency plans for all products and services to transition to alternative suppliers for all key products/services, should the need arise.
- Outcome
- There are comprehensive contingency plans in place for all products and services to transition to alternative suppliers and a decreased risk of stockouts or service loss.
- Metric
- % of outsourced IT services that have contingency plans or alternative service providers in placeHistorical analysis: supplier delivery failures impacting availability.
- 5Optimized
- Practices
- Continually review risk evaluations relating to supply for effectiveness.
- These should consider the extended supply chain, as appropriate (including links between IT suppliers).
- Outcomes
- Continuity and integrity of supply risk evaluations and contingency plans take the supply chain/ecosystem into consideration where appropriate.
- There is high visibility of inter-supplier issues.
- Metric
- % of contracts where inter-supplier issues are monitored
- Practice
- Continually review contingency plans including the supply chain/ecosystem considerations, as appropriate.
- Outcome
- Contingency plans review and take the supply chain/ecosystem into consideration where appropriate.
- Metric
- % of outsourced IT services that have contingency plans or alternative service providers in placeHistorical analysis: supplier delivery failures impacting availability