Product Overview

Summary: This Supply Chain Risk Management Standard Operating Procedure provides a clear, repeatable framework for identifying, assessing, and controlling risks across your suppliers, logistics partners, and critical inputs. Designed for Australian organisations, it helps you protect continuity of supply, meet customer and regulatory expectations, and respond quickly when disruptions occur.

Australian businesses are increasingly exposed to supply chain shocks – from extreme weather and transport disruptions to supplier insolvency, cyber incidents and geopolitical events. This Supply Chain Risk Management Standard Operating Procedure gives your organisation a structured, practical way to map critical supply chains, evaluate supplier risk, and implement controls before issues escalate into stockouts, missed contracts, or reputational damage. It translates high‑level risk concepts into day‑to‑day actions that operations, procurement and logistics teams can follow consistently.

The SOP outlines a complete lifecycle approach: from initial supplier due diligence and onboarding, through ongoing performance and risk monitoring, to incident response and post‑event review. It integrates commercial, operational, WHS, quality and cyber risk considerations so you can make balanced decisions about who you buy from, how you move goods, and what contingencies you need in place. Tailored for the Australian context, it aligns with local legislation and recognised standards, supporting robust governance, better contract management, and stronger evidence of due diligence for audits, tenders and insurer reviews.

By implementing this SOP, businesses can move from reactive problem‑solving to proactive supply chain resilience. It helps clarify roles and responsibilities across procurement, operations, WHS and finance, reduces reliance on single individuals, and embeds a consistent method for assessing and treating risk for both local and international suppliers. The result is a more stable, predictable supply chain that supports safe operations, reliable customer delivery, and long‑term business sustainability.

Key Benefits

• Reduce the likelihood and impact of supply disruptions through structured risk identification and assessment.
• Strengthen due diligence and governance over suppliers, contractors and logistics partners.
• Streamline cross‑functional decision‑making between procurement, operations, WHS, quality and finance.
• Enhance business continuity planning with clear triggers, escalation paths and contingency actions.
• Demonstrate robust risk management practices to customers, regulators, auditors and insurers.

Who is this for?

• Operations Managers
• Procurement Managers
• Supply Chain Managers
• Logistics Managers
• WHS and Risk Managers
• Business Continuity Managers
• Quality Assurance Managers
• Contracts and Commercial Managers
• General Managers
• Compliance and Governance Officers

Included Sections

• 1.0 Purpose, Scope and Objectives
• 2.0 Definitions and Key Terms
• 3.0 Roles, Responsibilities and Governance
• 4.0 Supply Chain Mapping and Criticality Assessment
• 5.0 Supplier Due Diligence and Pre‑Qualification Process
• 6.0 Risk Identification and Assessment Methodology
• 7.0 Risk Treatment, Controls and Contingency Planning
• 8.0 Supplier Contracts, Service Levels and Performance Metrics
• 9.0 Ongoing Monitoring, Reporting and Review of Supplier Risk
• 10.0 Incident Management, Escalation and Communication Protocols
• 11.0 Integration with WHS, Quality, Security and Cyber Risk Management
• 12.0 Business Continuity and Recovery Planning for Supply Disruptions
• 13.0 Recordkeeping, Audit Trail and Document Control
• 14.0 Training, Competency and Awareness Requirements
• 15.0 Continuous Improvement and Periodic SOP Review

Legislation & References

• AS ISO 31000:2018 Risk management – Guidelines
• AS ISO 22301:2020 Security and resilience – Business continuity management systems – Requirements
• AS ISO 28000:2022 Security and resilience – Security management systems for the supply chain
• Commonwealth Modern Slavery Act 2018 (Cth)
• Work Health and Safety Act 2011 (Cth) and equivalent state and territory WHS legislation
• Privacy Act 1988 (Cth) and Australian Privacy Principles (for supplier and logistics data)
• Safe Work Australia – Managing the Work Environment and Facilities Code of Practice (for logistics and warehousing interfaces)