Captain, we have a problem. Last month a 200,000-metric ton, 1,300-feet long container ship was stuck for nearly a week in the Suez Canal. Located between the Asia and Africa continents, the Suez Canal allows for roughly 12% of the global shipping trade to pass through.
With all the canal's traffic at a standstill for a week, industries from oil to food experienced serious delays and thousands to millions of dollars of damage to company supply chains. It could take weeks or months for businesses to recoup from their losses and for deliveries to be back on schedule.
The recent standstill in the Suez Canal is just another reminder of how one incident can greatly affect your supply chain. Some incidents are unpreventable—maybe due to weather or factors outside your control—but the best thing to do for your supply chain is to effectively manage it by being prepared, informed, and accountable.
How can you successfully manage a supply chain? Here are a few ways:
Vetting: Large global supply chains are familiar with using third-party contractors and suppliers. Doing so can be good for business but can also be a liability. If you properly vet third parties, you’re able to confirm contractors have the appropriate certifications, trainings, and experience needed for a particular job. Avetta’s Platform is an easy and cost-effective way to do just this. Avetta ConnectTM gives companies access to over 100,000 vetted suppliers and contractors and you can search by specialty, location, or both.
Assessments: Frequent audits can protect your supply chain in more ways than one. Minor indicators only provide part of the picture and give you false confidence in your supply chain knowledge. To fully manage risks, you need visibility into what suppliers are doing to prevent future incidents. Avetta’s Supplier Assessments utilize an independent team of over 55 certified safety and sustainability auditors who provide insights from leading indicators to help companies better manage risks and protect workers.
Insurance Monitoring: Vetting suppliers is an important first step to managing supply chain risks. But what if an incident does occur? Are you properly insured? Verifying and monitoring this information for all your suppliers can seem impossible. Avetta’s Insurance Monitoring solution alleviates this burden and gives you visibility into supplier insurance compliance. Not only does it protect your supply chain, but it will give you peace of mind.
Develop a Business Continuity Plan: When something unexpected does happen, how will your business react? This is where a strong business continuity plan can help. Developing a plan in case of events like the Suez Canal standstill, COVID-19 pandemic, or global natural disasters, helps you react quickly and confidently. Learn how to create your own BCP today.
“With Avetta, we’re equipped with the tools to connect with more clients, operate at the highest safety levels, do great work, and avoid hefty fines or lawsuits. You don’t get this type of springboard opportunity elsewhere.” – Bill Woods, Director of Client Relations at Alliance Group, Inc.
Avetta clients have saved money, protected thousands of workers, and maintained a positive reputation by using Avetta’s services. Although you may never expect a standstill in one of the largest shipping routes in the world, having the tools in place to successfully manage your supply chain can protect you from further damages.