In the wake of the recent Optus outage, which left millions of Australians without access to essential services, supplier diversity has never been more important.

Over  75% of businesses  consider supplier diversification a high priority and plan to increase their total number of suppliers by 2025. While no business can completely safeguard itself from disruptions, diversifying your supplier base can significantly lower your vulnerability to these risks.



Stay tuned to find out how you can effectively diversify your supplier network to enhance your resilience and position your business for sustainable growth in the long run.

Benefits of Supplier Diversity

In addition to risk mitigation, there are several other benefits to diversifying your suppliers.



• Increased Competition: When you have multiple suppliers competing for your business, you can drive down costs and negotiate better terms.
• Access to Innovation: Different suppliers bring different perspectives and expertise to the table, which can lead to new ideas and innovations.
• Enhanced Resilience: A diverse supplier base can help you to weather economic downturns and supply chain disruptions.
  

Top 5 Ways to Diversify Your Supplier Base

1. Utilise a range of marketing channels.

In today’s competitive business environment, a strong digital presence is essential for success. Businesses that fail to establish a well-rounded digital marketing strategy risk losing out on potential customers, falling behind competitors, and decreasing their overall brand visibility. By diversifying your digital marketing channels, you can effectively reach a broader audience, adapt to changing trends, and support long-term success.

Top Tip: A successful digital marketing strategy is not about dominating one single channel. It’s about creating a cohesive and effective online presence across multiple channels.

As a  full-suite digital marketing service , Localsearch can ensure your campaigns run in-sync with one another, giving you the best possible results.

2. Offer multiple payment options.

Relying on a single payment processor can be a significant risk for small businesses. If that processor experiences an outage, businesses may not be able to accept payments. Mobile payment systems like PayPal, Square, and Stripe allow businesses to accept offline payments using a smartphone or tablet. These systems are easy to use and can be a cost-effective alternative to traditional credit card processing. Offering multiple payment options is a great way to ensure your business can still accept payments even if one processor is down.

3. Alternative internet connection or backup communication strategy.

More than 10 million customers  were affected across the country when one of Australia’s largest telecommunication providers crashed. Many businesses who rely on EFTPOS machines were unable to serve customers costing them thousands of dollars.



It’s safe to say investing in an alternative internet connection or backup communication system is worth the expense. Small businesses can choose from various backup options, including mobile broadband, satellite internet, or even a dedicated backup phone line. The specific choice will depend on your business’s needs, budget, and location.

4. Expand your supplier base for inventory and equipment.

By relying on multiple suppliers for inventory and equipment, small businesses can reduce the risk of supply chain disruptions. Almost  20% of small businesses  surveyed in the recent State of Small Business Survey revealed they have already expanded their list of suppliers and partners to ensure supply chain resilience.



Top Tip: Working with diverse suppliers is not just about reducing risk, it’s an opportunity to uncover new insights, introduce innovative solutions and negotiate lower prices.

5. Enlist a backup delivery service.

A backup delivery service ensures that your business can receive stock promptly, even if your primary delivery provider encounters unexpected issues. Additionally, it’s a proactive step towards handling unexpected surges in delivery volume, especially during peak seasons.

Looking to grow your business?

As one of the highest rated digital marketing services in Australia, we can help make growing your business stress-free and affordable. Start taking the weight off your shoulders and request a free quote from your Localsearch Digital Marketing Specialist today.