Tuesday, 6 June 2017

SUPPLY CHAIN MALAYSIA: The Importance of Supply Strategy

Companies today generally carry smaller inventories in a bid to stay lean, and any disruption to supply can make planning more challenging than ever.

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Thus, developing a strategy to ensure supply chain resilience and protecting against foreseen events – such as adverse weather, a major fire or failure of IT systems – is key to keeping shortages or disruptions to a minimum.
“Unfortunately, there is no one-size-fits-all solution,” said Alan Ross, Senior Strategic Risk Management Consultant, Risk Engineering, at Zurich.

“One issue we have often found when looking at a company’s tier two suppliers, is that further back in the supply chain they all rely on the same supplier,” said Alan.
“This means that while you might think you’ve got three alternative suppliers should anything go wrong, in reality they may all rely on the same supplier at some point in the chain. And depending on the supply you need it can take weeks or months getting an alternative supply chain up and running.”

Putting plans in place

Having a supply chain strategy that looks outwards, as well as inwards, can also mitigate risks. So, a company should not solely rely on its own business continuity arrangements, but also have a solid understanding of its key suppliers’ plans as well.

Ready to be guided in Planning your Strategy? Sign up in our course:

Specifying Requirement & Planning Supply
2-3 August 2017

Analysing Supply Market
16-17 August 2017

Developing Supply Strategy
13-14 Sept 2017

Article extracted from Zurich


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