Yes, you’re likely to have a good idea of who is at Tier 1 in your supply chain, but are you aware of who is supplying them further down the line? Thousands of security installers are contracted every day to conduct ‘high risk’ activities such as working at height, in confined spaces or electrical maintenance so effective health and safety management must be a high priority.
To ensure that health and safety is watertight throughout your supply chain, you must insist that suppliers provide evidence of the competence of any subcontractors they use
As security companies can be held liable for supply chain partners’ mistakes, a faulty barrier system, for example, could cause liability for the designer, manufacturer, shipper, distributor, seller and installer. If suddenly your supply chain is full of weak links, could you and your customers withstand this disruption?
After the appointment of the Tier 1 contractor, they are in a position to appoint subcontractors to undertake the service on their behalf. This approach means that companies attending site are several tiers removed from the Tier 1 contractor, and have not been under the same level of health and safety scrutiny that the Tier 1 contractor received prior to their appointment.
If a contractor has not gone through the relevant checks and assessments, you and your brand reputation could be exposed to a great deal of risk. To ensure that health and safety is watertight throughout your supply chain, you must insist that suppliers provide evidence of the competence of any subcontractors they use.
Whilst at first glance, risk management can appear to be a headache; it actually supports positive, strong supplier partnerships and is helping organisations in many sectors to secure a more efficient supply chain. Who wants to work with suppliers or installers that don’t manage health and safety?
Whether you implement an in-house system or outsource to a professional supplier, ensuring a fully health and safety compliant network of suppliers will enhance as well as protect your business.
The Health & Safety Executive (HSE) has published a Guide to Managing Contractors which should help small security firms and suppliers gain a better understanding of these issues.
Mitigating risk in your supply chain is no longer the headache it once was
Unlike other sectors such as aerospace and defence, where the focus rests on several large companies, SMEs tend to dominate the security sector. This February saw the introduction of tougher corporate penalties for health and safety failings by the Sentencing Council, putting the topic firmly back on the board agenda for businesses of all sizes. The security industry must set stringent health and safety standards that all contractors abide by to protect workers and corporate reputation.
Whilst the upfront investment to set up a ‘vetting system’ may seem sizeable, getting compliance right throughout the supply chain early on will not only ensure that you employ ‘best of breed’ suppliers, it will also help to create significant cost-efficiencies through long-term partnerships.
The consequences of disruption within the supply chain when things go wrong are many and varied, all of which could have an immediate financial impact on your organisation, but there’s also the potential for long term damage. This could include a loss of revenue, damage to reputation or loss of productivity to name just a few.
You could witness your services failing to meet demand, see delays in your cash flow and even go through legal proceedings. Ultimately, all of these issues will contribute to customer dissatisfaction and your credibility as a supplier.
From advice on developing your own in-house compliance supplier framework, to advisors and full service professionals who handle the entire process for you, mitigating risk in your supply chain is no longer the headache it once was. Whether you’re a large manufacturer or specialist service provider, there are cost-effective solutions on the market to help. If you’re questioning the integrity or professionalism of any contractor, go with your gut and seek professional advice.
For security manufacturers keen to shake up their supply chain, the industry recommendations cited in the previous coalition government’s ‘Strengthening UK Manufacturing Supply Chains’ makes an interesting read.
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