Managing risks effectively is crucial for successful supplier engagement. Here are some strategies:
1. Diversification: Avoid reliance on a single supplier by diversifying your supplier base. 2. Contracts and Agreements: Draft comprehensive contracts that include service level agreements (SLAs) and penalty clauses for non-compliance. 3. Continuous Monitoring: Implement continuous monitoring systems to track supplier performance and compliance. 4. Emergency Plans: Develop contingency plans to address potential supply chain disruptions.