Description of risks to contract performance
1. Supply Chain Disruption:
Delays in the availability or delivery of material handling equipment due to global supply chain issues, semiconductor shortages or manufacturer backlogs.
2. Inflationary and Economic Pressures:
High inflation, energy costs or fluctuations in exchange rates may impact supplier pricing for equipment, servicing or parts.
3. Equipment Failure or Underperformance:
Unexpected reliability issues or accelerated wear-and-tear on high-use equipment could lead to increased downtime, affecting logistics performance.
4. Changes in Operational Demand:
Unforeseen shifts in warehouse usage (e.g. due to pandemic response, supply chain redesign or centralisation of services) may increase or decrease equipment requirements beyond initial forecasts.
5. Compatibility with Site Infrastructure:
Transitioning to electric MHE may uncover compatibility issues with site charging capacity, layout or ventilation, particularly in older buildings.
6. Delays in Mobilisation or Training:
Delays in delivery, commissioning or training during contract mobilisation could impact the ability to decommission legacy equipment and roll out new units.
7. Supplier Financial Instability:
Economic pressures or overextension may affect supplier solvency or ability to deliver full contract requirements.
8. Legislative or Policy Changes:
Future changes in health and safety legislation, sustainability policy or NHS operational standards may impact contract requirements.