Tackling supply chain challenges: CEO action plan

Ask questions: 

• Where are the largest gaps in your supply chain occurring?  
• What impact are energy price rises having on your costs? Is your business protected against price rises, or is your supplier contract up for renegotiation? 
• What impact are price rises and raw material shortages having on your output? 
• To what extent can increased cost pressures be absorbed, and for how long? 
• What’s the greatest threat to your long-term business objectives? 
• Are there any opportunities for business growth arising from this long-term disruption? 
• How are increased costs impacting supply chain partners? 

Take action: 

• Get the full picture by speaking to operational heads and supply chain managers 
• Undertake an assessment of the picture in your sector using data and insights – including intel from CBI or trade associations as useful sources of information. 

Ask questions: 

• What business continuity plans are in place to deal with supply chain disruption? 
• How is your business working with suppliers to maximise flexibility and minimize disruption? 
• How are you communicating with customers about the impact of delays to delivery and/or lead times? 
• What, if any, changes have been made to your business’ procurement strategy in response to supply chain challenges?  
• What are operational heads and procurement managers doing day-to-day to minimize disruption? 

Take action: 

• Discuss the supply chain challenges facing operational heads to inform an organisational strategy that has Board agreement 
• Ask operational heads what aspects of procurement are working well, what’s not and why? 

Ask questions: 

• Which aspects of your supply chain strategy are better or worse than your competitors? 
• What financial resources does your business have to invest in minimizing disruption, including new skills and technology, and over what time horizon? 
• Who are your peers, in the same sector or different, that are best placed to kick the tires on your approach? 

Take action: 

• Interrogate the financial forecast, and assess the people, operational and technology budget against long-term forecasts and business objectives 
• Brainstorm how the business can improve its strategy to navigate raw material shortages and energy price rises with Board members or operational heads 

Ask questions: 

• Which parts of the business need to be mobilised to adopt new approaches and how will this be achieved? 
• What supply chain and energy risks require ongoing Board discussion and decision-making? 
• What metrics should new approaches be evaluated against and how will this be achieved? 
• What will trigger the need to adjust approaches to maximise opportunities or challenges presented by supply chain disruption? 

Take action: 

• Set out the strategy for changes to your approach to supply chains and energy, and challenge teams to deliver a plan 
• Communicate the role of relevant operational heads and line managers in its delivery, and how they should prioritise accordingly 
• Establish an appropriate measurement and monitoring framework, and regularly assess 

Ask questions: 

• What impact have changes in your approach had on productivity and costs? 
• How are your business’ practices helping minimise disruption in your sector? 
• What was successful, what have you learnt and wished you’d done differently or known at the start? 

Take action: 

• Communicate your story – speak to your CBI point of contact or visit our member opportunities, and make the most of your own media channels 
• Attend events, initiatives, campaigns or business-education partnerships to tackle disruption in your sector