You have the power and influence to prevent your company from toppling into an economic abyss. At least that’s the conclusion of a new survey of supply chain managers.

Their biggest concern?

Supplier continuity, named by nearly 70% of those surveyed.

That’s because goods and services procured from the outside make up between 40% and 80% of most companies’ operating costs. Interrupt the flow of goods and services, and the impact will be far-reaching.

A spokesman for KPMG International, which conducted the survey, offered three recommendations for bolstering procurement and purchasing functions:

• Explore back-up sources: Companies that rely on single suppliers for key goods and services could quickly find themselves in deep trouble, should one of those suppliers go under.
• Keep an eye on your suppliers’ financial health: Watch for signs they might be struggling — late deliveries, short shipments, layoffs. Smaller vendors are the most vulnerable.
• Collaborate more with suppliers: Hard times make for great opportunities to collaborate with key suppliers. In some cases, you can adjust payment terms to help ease a supplier’s crunch. Strong working relationships with your suppliers leads to an advantage over your competitors. When the chips are down, who are they going to help?

Tags: collaborate, procurement, suppliers, supply chain, terms