Our recommendations

Strategic suppliers: Understanding and managing the risks of service disruption.

We recommend that:

  1. the Ministry of Business, Innovation and Employment:
    • improve the reporting tool for significant service contracts to improve the information available on these contracts and government strategic suppliers; and
    • regularly analyse, share, and report to the Government on this information;
  2. the Ministry of Business, Innovation and Employment, the Department of Internal Affairs, the Department of the Prime Minister and Cabinet, the Treasury, the National Emergency Management Agency, and other agencies as appropriate:
    • consider how the public sector, including local government, can build on existing initiatives to ensure that strategic supply risks affecting important public services are well understood, managed, and co-ordinated; and
    • work with Te Kawa Mataaho Public Service Commission to ensure that roles and responsibilities are clearly assigned;
  3. the Ministry of Business, Innovation and Employment provide further guidance to help public organisations identify their significant service contracts and strategic suppliers;
  4. public organisations regularly assess which of their suppliers are strategic suppliers, the resilience of these suppliers, and how they manage their relationships with them, both in normal circumstances and in emergencies; and
  5. public organisations have adequate processes in place for reporting strategic supply risks to their senior leaders and governing bodies.