Today’s post is by David Wenig; Senior Account Manager at SafeSourcing. David asks "Are you still having supply chain issues?”
It has been 125 days since the devastating earthquake and tsunami hit Japan, yet many companies are still struggling to cope with the fallout of their supply chain. Hopefully, our readers are not in this situation. However, if your company is still struggling with a supply chain issue or if you would like to be prepared for a future disaster, please read on.
Yesterday, I spoke with a vendor that had to sit out of a $2.9M opportunity due to such an issue. What’s worse; they told me that they have taken steps to source their products in North America, but that they are still six to eight months away from considering new business. No matter who you are, you simply cannot afford to walk away from sales opportunities of this (or any) size.
So, how could they have mitigated their exposure to this risk?
There are a variety of resources and processes that could (and should) have been in place long before any disaster struck.
1.Only purchase using an RFx service. Hosting an RFI, RFP, or an RFQ would have identified additional sources of supply with contacts in the event that a vendor change is required.
2.Implement a contract management service. In the example I have used, they have had this same source of supply for years. Using contract management, this company would have been prompted to source this product several times during this timeframe based on the appropriate schedule and contract terms.
3.Consult with your strategic sourcing partner. Whether you want to be prepared for the future or work through a current supply chain issue, call on your partner for advice. Their job is to help you succeed.
For more information on SafeSourcing and supply chain interruption preparedness, please contact a Customer Service representative.
We look forward to and appreciate your comments.