How can you ensure business continuity when vendors are disrupted?

1 Assess your vendor dependencies

The first step is to identify and evaluate your current and potential vendors, and how they impact your business processes and objectives. You can use a vendor dependency matrix to map out the relationships between your vendors and your functions, and rank them according to their criticality, frequency, and complexity. This will help you prioritize your vendor management efforts and identify any gaps, overlaps, or redundancies in your vendor portfolio.

2 Establish clear expectations and SLAs

The second step is to communicate and agree on the expectations and service level agreements (SLAs) with your vendors, and document them in contracts or statements of work. SLAs define the scope, quality, and timelines of the vendor's deliverables, as well as the metrics, penalties, and incentives for their performance. They also specify the roles and responsibilities of both parties, and the escalation and resolution procedures for any issues or disputes. SLAs help you monitor and measure your vendor's performance and compliance, and hold them accountable for their results.

3 Monitor and manage vendor risks

The third step is to continuously monitor and manage the risks associated with your vendors, and update your contingency plans accordingly. You can use a vendor risk management framework to identify, analyze, evaluate, and treat the potential threats and opportunities that your vendors pose to your business continuity. These can include financial, operational, reputational, legal, or security risks. You can also use a vendor risk register to track and report the status, impact, and mitigation actions for each risk.

4 Diversify and backup your vendor sources

The fourth step is to diversify and backup your vendor sources, and avoid relying on a single or few vendors for your critical functions or services. You can use a vendor diversification strategy to expand your vendor pool and create alternative or backup options for your key vendors. This can help you reduce your vendor concentration risk, increase your bargaining power, and enhance your flexibility and resilience. You can also use a vendor backup plan to outline the steps and resources needed to switch or replace your vendors in case of a disruption.

5 Communicate and collaborate with your vendors

The fifth step is to communicate and collaborate with your vendors regularly, and build trust and rapport with them. You can use a vendor communication plan to define the frequency, mode, and purpose of your interactions with your vendors, and assign roles and responsibilities for each communication channel. You can also use a vendor collaboration platform to share information, feedback, and ideas with your vendors, and foster a culture of innovation and improvement. Communication and collaboration can help you align your goals and expectations, resolve issues quickly, and leverage your vendor's expertise and insights.

6 Review and improve your vendor performance

The sixth step is to review and improve your vendor performance periodically, and recognize and reward their achievements. You can use a vendor performance review process to collect and analyze data on your vendor's performance, quality, and satisfaction, and compare them against the SLAs and benchmarks. You can also use a vendor performance improvement plan to identify and address any gaps or weaknesses in your vendor's performance, and set goals and actions for improvement. Reviewing and improving your vendor performance can help you optimize your vendor value, efficiency, and reliability, and strengthen your vendor relationships.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?