Managing Supply Chain Risk
Last month, I finished my email series discussing my supply chain digitization journey. Moving forward, I will continue sharing my experiences in managing $3.5 billion in indirect spend. Today, I will open up discussing Supply Chain Risk.
Multitiered Supplier Diversity
A common supply chain risk mitigation strategy is to source to multiple suppliers when a product is strategic or has significant volume. As a product, and the associated supply chain for this product, becomes more complex it becomes critically important to understand the strengths and weaknesses of your suppliers’ supply chains as you seek to secure your own product.
Identify pinch points and build mitigation plans
Understanding the complete risk to supply chain disruptions is critical to the success of your sourcing plans. As we had multiple suppliers who in turn relied on all of their suppliers, looking at those next levels of the supply chain became crucial to flushing out upcoming issues. Take the time to identify pinch points in your supply chain today and build mitigation plans with your suppliers. You will then be prepared when things go wrong in the world, and they will go wrong.
How I handled a specific pinch point
Next week, I’m going to touch on a specific Supply Chain pinch point that my team and I worked through. I hope you find this useful as you continue each of your supply chain journeys. You can follow the link below or reach out to me directly to learn more about Lumatrak.
Lumatrak’s PULSE software offers you tools that will help make sense of the chaos by connecting the processes, systems and communications supporting your purchases from the time of purchase to final delivery to your site.