By David Taylor MCIPS, Senior Supply Chain Manager at Procure Plus
Major crises such as the current geopolitical instability in the Middle East and challenges like labour shortages and inflation can severely impact even the most carefully planned procurement strategies.
While these pressures can’t be avoided, the way organisations respond to them can make all the difference. Those that remain resilient tend to be the ones that have invested in closer relationships, improved visibility, and better data sharing – allowing them to anticipate challenges rather than simply react to them.
This shift requires a more direct, connected way of working that brings suppliers and customers together to ensure stability in an increasingly unpredictable environment.
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Lessons from disruption
One of the clearest differentiators during times of crisis is the extent to which organisations are directly engaged with their supply chain. Direct, consistent communication with suppliers creates a clearer picture of what’s happening on the ground with a greater understanding of emerging risks and market conditions. Regular reviews and honest conversations can also help address underperformance before it escalates.
This was particularly evident during COVID-19, which exposed vulnerabilities in areas such as just-in-time manufacturing and an overreliance on single or global suppliers.
Some organisations had robust continuity plans in place and were better prepared for disruption. Others, operating without buffer stock or flexibility, faced stock shortages, delays, and inconsistent service.
COVID showed us which supply chains were optimised for spreadsheets and which were built for reality. Although today’s challenges differ, the underlying pressures remain – from material shortages to price volatility and global constraints.
By reviewing supplier performance once markets stabilised, we identified what worked well to support continuity of supply and the common weaknesses and patterns among suppliers who struggled. Sharing these insights as best practice has helped strengthen resilience across our wider supply chain.
Replacing ad hoc communication with regular, structured dialogue underpins this approach. The closer you are to your supply chain, the better equipped you are to manage it.
Building resilience through data and relationships
Resilience also comes from reducing overreliance on any single supplier. Establishing clear framework specifications that enable multiple suppliers to meet requirements creates flexibility and built-in contingency.
At Procure Plus, our frameworks are designed to support genuine multi-sourcing, including smaller and mid-sized UK manufacturers.
While SMEs are sometimes perceived as higher risk, larger organisations are not immune to failure. A diverse supply base creates surge capacity and helps maintain continuity if one supplier is unable to deliver.
Long-term relationships are equally important. Close collaboration enables organisations to share pipeline information, identify emerging trends, and forecast demand more accurately. This level of transparency benefits both suppliers and customers, creating a more stable and informed supply chain.
Data plays a key role in this. Through detailed reporting and ongoing input from account managers, we build a comprehensive view of activity across projects and sites. This allows us to identify spending patterns and track demand trends – turning individual data points into shared, actionable insight.
When this intelligence is shared across the supply chain, it ensures greater certainty for suppliers and enables more informed decision-making at every stage. The result is a better-connected and more responsive system rather than a fragmented one.
Managing risk and adapting to change
Effective risk management starts with a clear understanding of the market. Regular assessment of market health, competition, innovation, skills, and capacity helps shape a strategy that reflects real-world conditions, including the financial stability of suppliers.
Cost benchmarking is also essential. It’s important to understand likely project costs, challenge abnormal pricing, and consider whole-life value rather than focusing solely on upfront cost.
In volatile markets, a common response is to attempt to fix prices or transfer risk onto contractors. However, this often leads to inflated pricing, reduced competition, or suppliers withdrawing from contracts altogether.
A more sustainable approach is to manage risk collaboratively. Open communication and shared insight allow both organisations and suppliers to better understand where risks sit and how they can be mitigated. Flexible mechanisms, such as temporary surcharges, can also help manage short-term fluctuations without locking in long-term cost increases.
Being adaptable to market conditions and considering alternative approaches or materials can address issues such as skills shortages and stock availability. For example, where tilers are in short supply, wall boards installed by joiners can provide a practical alternative that keeps projects on track.
Early engagement with the supply chain also creates space for innovation and ensures specifications are aligned with what the market can realistically deliver, reducing the likelihood of cost increases later.
Disruption is inevitable, but it doesn’t have to derail operations. By sharing risk, strengthening relationships, and making better use of data, organisations can build supply chains that are not only more resilient, but more responsive.
The core theme that runs throughout is that communication is critical to strengthening supply chains. Organisations that demonstrate direct engagement, strong relationships, effective use of data, and a willingness to collaborate and adapt are in a better position to navigate uncertainty.
