For your business to be able to withstand any potential supply chain disruptions, it has to be prepared. To be prepared, you need to understand and predict what effect any disruptions will have on your business and plan accordingly.
In order to understand your exposure to supply chain risk, you will need to undertake a methodical review of your business, its processes, people, suppliers, customers and market environment.
Assessing new suppliers and closely monitoring those already forming a key part of your supply chain is fundamental to both understanding your exposure to supply chain risk, and proactively mitigating that risk.
When partnering with new suppliers, be sure to assess them against the following factors:
To help mitigate the risk of supply chain disruption, try to reduce your dependence on single supply lines. Obviously, if you’re dealing with a niche product, or have secured a significant bulk discount, then you have to weigh the benefits with the risks. However, relying too much upon a constant and uninterrupted supply from a single vendor, country or region can create a single point of failure.
Try to identify and build relationships with alternative primary and secondary suppliers. Understand which suppliers would represent the best alternative sources should a problem with your preferred suppliers occur.
Choose suppliers from different geographic regions. Seek out those who supply through secondary port locations. Although cost may be the main driver for supplier location, ensuring you have a diverse base of suppliers will help when a particular country or region experiences a disruption.
Make sure all of your cnc machining parts suppliers are aware of your forecasts and customer demand cycles. When a fluctuation occurs they will be prepared and able to deal with it more easily. Be proactive instead of reactive. Incorporate agility into your cash flow management. With working capital available to smooth out demand, you’re less likely to experience disruptions in supply during spikes of increased demand. Pay your suppliers promptly. A supply chain with a healthy flow of working capital is far less likely to run into internal problems.
With the continuing growth of big data and the sharing of information, supply chains are becoming just as much about the flow of information as they are about the flow of goods and services.
Risk mitigation is a built-in benefit of using Worthy Hardware to get CNC machined, CNC milling, or sheet metal fabrications parts. In addition to having the country’s largest, domestic, distributed and qualified supply base, we also insure every order for quality. Find out more about how we lessen your vulnerabilities and get you the parts you need at the same time here
Worthy Hardware is a CNC manufacturing and sheet metal fabrication company,including CNC machining services,CNC milling services, CNC turning services, laser cutting services and stamping services.Call us +86-76989919645 or email us [email protected] for more discounts for your projects.