Gartner Research

Develop Contingency Plans for Your Critical Suppliers, or Risk Business Disruption

Published: 06 October 2017

ID: G00343151

Analyst(s): Roberta Witty , Christopher Ambrose , Gayla Sullivan


Failure to create contingency plans for suppliers that support or provide critical business processes or systems can lead to business disruptions. Sourcing and vendor management leaders must ensure that plans and actionable exit strategies exist to deal with the potential loss of a supplier.

Table Of Contents
  • Key Challenges



  • Implement a Supplier Risk Assessment and Develop BCM-Aligned Contingency and Exit Plans
  • Identify Risky Suppliers and Contracts Based on Their Business-Criticality and Potential for Business Disruption
    • Develop a Tiered Supplier Inventory
    • Classify Your Suppliers Specific to Risk
    • Determine Which Suppliers Present the Greatest Risk Potential
  • Assess Recovery Strategies and Business Continuity Plans for Your Critical Suppliers and Their Supplier Partner Networks
    • Use a Supplier Survey to Understand a Supplier's BCM Program
  • Develop Contracts That Include Early Termination Triggers, Rights and an Actionable Exit Plan
  • Develop Supplier Contingency Plans
    • Develop Risk Mitigation Controls for Critical Suppliers
    • Develop Exit Strategies and Triggers for Critical Suppliers
    • Develop Alternative Supplier Strategies and Procedures

Case Study

  • Nirvanix

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