Procurement risks highlight need to prepare for the worstThere are plenty of risks involved in a company's procurement strategies. While it's difficult to eliminate all problems entirely, it is possible to reduce the issues so they don't pose an enormous threat to the future of a business. Sometimes it is impossible to know which elements are a risk until it's too late - in this instance, it's always a good idea to have a backup plan for potential disasters.

Security an increasing concern
The security of a supply chain is important to a company's bottom line, and fixed procurement strategies are essential to making sure operations run smoothly. When a business is hit with unexpected news about a disaster or unrest in an area it has interests in, the situation can be unsettling.

Companies with interests all over the world need to keep track of what's going on in many different places at once, and it can be hard to assure nothing will get in the way of a smooth supply chain. However, disruptions do happen - and when they do, businesses without a backup plan can face serious consequences if they don't know where else to source their raw materials from.

Smaller companies often hit the hardest
Procurement strategies may seem to be running smoothly, but until a natural disaster hits, a war breaks out or a terror attack shuts down an area, it's impossible to be entirely sure of how resilient purchasing strategies really are.

When an event does occur and previous procurement policies are no longer an option, it's often small and midsized businesses that suffer the most. Unexpected disasters like earthquakes, floods and hurricanes can put a huge dent in productivity if a business sources materials from a hard-hit area that can no longer supply a raw material. While global corporations have the money and resources to put into finding a new supplier or material quickly, it often takes a much longer time for smaller companies to do the same thing. Having a plan for where to turn if something should happen is critical to preventing product shortages and losing sales to competitors.

Because things can go wrong at the drop of a hat, it's critical for businesses - especially smaller companies without unlimited resources - to develop backup plans in case their suppliers are no longer able to send them the goods they use in their products. Without a proper procurement backup plan, an entire supply chain can be stalled and put a dent in a company's quantity of goods on the market, as well as its reputation.
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