The current supply chain crisis has led many large corporations to consider re-evaluating their purchasing strategy, which today is measured primarily in year-to-year piece price.
Outdated shoot-from-the-hip planning is getting companies into trouble with unbelievably long lead times, supplier constraints and other costly risk factors.
IndustryWeek Supply Chain Advisor Paul Ericksen believes that, in order to improve supply chain risk planning, these 3 primary strategies need to be reviewed:
- The source selection process;
- The management of supplier relationships; and
- Whether supply management is considered a tactical or strategy function within an organization
Businesses have been too dependent on shoot-from-the hip strategies. Read the full article to see how heroic efforts around COVID-19 highlight the need to change this.
Stop Shooting from the Hip
The changes we’re experiencing today are not going away after the pandemic stabilizes. If you’re struggling to manage supply chain risk, such as expensive safety stock to meet unsurmountable volatility and customer demand, let’s talk.
We’re been in the business of helping companies build a more foreseeable future through better Supply Chain Planning, and we can do it for you.
Get more tips on supplier management here:
5 TIPS FOR RENEGOTIATING YOUR SUPPLIER CONTRACTS