How to Protect Your Operation from Supply Failures

Originally Published: April 13, 2026

What would you do if your supply chain failed this week? Do you have backup plans? Would you be able to source what you need from an alternative supplier, and how much would that impact your bottom line?

Disruption to your supply chain can set you back in relation to production, and it can be extremely expensive once you factor in all the costs associated with poor supply chain management and your dependency on too few suppliers.

And sure, it’s good to have great relationships with certain suppliers. But you shouldn’t be relying on them solely.

If you want to know how you can protect your operation from supply failures, we have some tips that can keep you operational even if things don’t run to plan.

Know Your Critical Supply Points

The first thing you need to do is map out your operations. You need all the points it depends on to function with, not just raw materials and not just the one aspect of the operation; you need them all. You need consumables, specialist inputs, and anything that is critical to the operation.

You need to know who and what you rely on and what would happen if your regular Tuesday delivery didn’t arrive till Wednesday or your main supplier went bust overnight.

Because the reality is, while you can likely name a few suppliers off the top of your head, there will be many more you don’t realise play an integral part.

Go through every department, every process, and write it all down — what comes in, what goes out, how often from whom, and what happens if it doesn’t arrive. This is your starting point.

Audit Your Current Suppliers

Once you have your list, you need to go through and perform an audit of all of your supplies.

• How long have you been using them?
• Have they ever issued a delivery?
• Have they ever shortened an order?
• Do they communicate proactively when problems arise?
• How well do they deal with issues?
• Do you know how to contact someone if your order does not arrive?
• Can they reliably manage the capacity of orders you need from them?

This is especially important if you rely on specialist suppliers for things like industrial gases. You need to know your nitrogen supplier can handle the capacity of your orders, has proven themselves to be reliable, and has the level of technical support you need and expect from them.

If you need more assistance or you have concerns, take these directly to the supplier. Talk to them about your needs and ask the right questions to get the answers.

From here, you can cut loose any suppliers if they cannot meet what your company needs when you need it, or scale back your orders with them and move to a supplier who can deliver what you need.

Build a Back-Up Supply Plan

Now, this doesn’t mean you need to be playing suppliers off against each other, but you do need a backup for times when things go wrong. You don’t want to be “figuring it out.” You need to move quickly to limit disruption and keep everything running like clockwork.

Your backup plan should include suppliers you have already made contact with, ones that you may use for smaller shipments, or you order different supplies from but carry other materials you need.

The idea is to have a list of suppliers you’ve made at least one order from, so you’re not cold calling people in the middle of a production stoppage when you’re desperate. You simply need to make a call and submit an order with a company you already know.

Remember to keep the relationship active by checking in, putting in sporadic orders if you need to, and ensuring that, should you need to rely on them, they can match the volume you’ll need.

Set Minimum Stock Levels

One way to avoid a supply chain disruption is to always have a minimum level of stock. How much exactly depends on the frequency of your orders, your storage limits, and production capacity, as well as the actual products you’re making or selling.

It’s not about overstocking, it’s about having enough on hand for you should you find yourself unable to source more.

Calculate your minimum based on your lead time from your backup supplier, not your primary one. If your backup supplier needs 5 days to deliver, then you need to have 5 days’ worth of stock minimum to cover you.

Review these levels every few months to ensure that you’re not running low or demand hasn’t changed without minimum levels changing to meet this. Then check in with your backup suppliers for more accurate lead time and adjust accordingly.

Put Service Agreements in Writing

An informal agreement or a verbal contract is worthless when things go wrong. You need to ensure you have all of the agreements for all of your suppliers in writing so both parties know the terms.

You need to lock down delivery schedules, responses, volume commitments, and remedies for failure. Because if this is all written in the contract, everyone knows where they stand and what is expected of them.

And if the supplier refuses or resists putting things in writing, then you’ll know there is something that could undermine your relationship and put what you do at risk. Suppliers who have nothing to hide and have a proven track record and reputation will be happy to get things down in writing and work with you for what you need from them.

Train Your Team

Your suppliers are only part of the issue. You need to make sure the people managing it day to day know what they’re doing, too.

Does your team know the minimum stock levels and what to do if they fall below what you need? Do they know when to put an order in for more stock in relation to lead times? Do they know who the backup supplier is and how to contact them, and is there a clear process for logging delivery issues so you can spot patterns before things fail entirely?

All of your protocols need to be written down, and you need to make sure everyone knows them and can follow them with ease. Do not rely on everything being in the head of one person, because if things are going wrong and they aren’t around, things fall apart fast.

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