Our company has helped many customers to build a resilient supply chain.
As part of our experience, we recommend to monitor the supply chain constantly.
High Risk Of Supply Disruption:
HIGH REVENUE IMPACT if supplier or part(s) is lost
Monitor suppliers 24/7.
Buy insurance to cover profits lost from a disruptive event at critical suppliers’ sites.
Work with sole-source suppliers to develop alternate source.
Know where suppliers build and store your parts and raw materials.
Ask sole-source suppliers to build and store parts at alternate sites.
Identify and monitor the sub-tier suppliers that your Tier 1 suppliers use for critical parts or materials.
Ensure Tier 1 suppliers have comprehensive risk management programs (i.e., they map and monitor their suppliers, adding alternate sources for their highest-risk suppliers).
LOW REVENUE IMPACT if supplier or part(s) is lost
Monitor suppliers 24/7.
Know where suppliers build and store your parts and raw materials.
Identify sub-tier suppliers and sites.
Ask suppliers to build and store parts in multiple sites (particularly when an alternate supplier cannot be found).
Ensure Tier 1 suppliers have comprehensive risk management programs (i.e., they map and monitor their suppliers, adding alternate sources for their highest-risk suppliers).
Lowe Risk Of Supply Disruption:
HIGH REVENUE IMPACT if supplier or part(s) is lost
Monitor suppliers 24/7.
Source from two suppliers (75%–25%) rather than one.
Map suppliers’ manufacturing, warehouse, and distribution sites to ensure they’re not all in the same region.
Identify the Tier 2 suppliers that Tier 1 suppliers use for critical parts or materials.
Buy insurance to cover profits lost from a disruptive event at critical suppliers’ sites.
LOW REVENUE IMPACT if supplier or part(s) is lost
Monitor suppliers for shifts that might increase their risk, such as a corporate restructuring, M&A, profit warning, lawsuits, etc.
Know where suppliers’ manufacturing and warehousing sites are located, and seek geographic diversity to avoid total loss of supply in future natural disasters.
Identify suppliers that rely on the same sub-tier suppliers for critical materials.
Comments