These factors together further demonstrate that the supply chain is a highly complex and legitimate source of concern requiring focused and immediate action. The Year 2000 problem requires all organizations to carefully identify their risks and develop plans to mitigate them. Organizations must be able to demonstrate that they have been diligent, and have reasonably and responsibly taken the prudent steps to ensure that operations will not be impaired. There are two key areas of focus in supply chain management. The first relates to purchasing processes, and the other involves contingency planning.
Organizations have many different processes for obtaining product.
These should be clearly identified and different strategies developed for each. These contracts should be revisited to ensure they include Year 2000 product compliance warranties and supply continuity warranties. Organizations should make sure that contracts renewed during 1999 include appropriate compliance language, reviewed by the organization's legal counsel. Furthermore, organizations should also consider reopening and extending contracts that expire towards the end of the year to ensure continued supply. Those contracts that span the year 2000 will likely be more difficult to renegotiate, and hence efforts may be better focused on the other contracts and on the activities described below.