The chain is only as strong as its weakest link. This adage also applies to the supplier network, external suppliers and even government agencies that make up your supply chain. By identifying defects and vulnerabilities, it is now possible to minimize the risk of malfunctions, product damage or communication errors.
UNDERSTANDABLE SOURCES OF VULNERABILITY
Your supply chain is exposed to various threats. One of the most common:
– The vulnerabilities of your suppliers;
– Natural disasters or economic factors ;
– Limited layoffs;
– Failure to identify and address vulnerabilities in advance;
– Diversification failure ;
– Outsourcing to places vulnerable to natural or man-made vulnerabilities.
Of course, some of these factors are easier to manage than others, but the more information you can gather about each of these factors, the better prepared you will be.
THE COMPLETE MAPPING OF THE SUPPLY CHAIN PROCESSES
The term supply chain means that the path from the raw materials to the electromechanical switches from NKK to the final product is simple and uncomplicated.
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In reality, your supply chain is a complex network of interconnected parts: Suppliers, legislators, regulators and third and fourth parties. You can no longer afford to limit your understanding to your main suppliers, as vulnerabilities can be found all over the maze.
Mapping the supply chain takes months, sometimes longer, and can be costly and time consuming. Still, it’s one of the best ways your business can make use of the resources it can deploy when looking for vulnerabilities.
IMPLEMENTING WAREHOUSE MANAGEMENT SYSTEMS
One of the best tools for clarifying complex networks and optimising production can be found in warehouse management systems. Combined with automated technologies, this mechanism can help you streamline business processes, reduce redundancies and maximize efficiency.
Let the data speak
Just as the wind whistling under your door can reveal inefficiencies when wintering your home, measurable data about your supply chain can help you identify problems.
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Surveys, audits and other evaluation tools can help you gather information about the extent to which your results have been below, equal to or above your production and cost targets. As quantitative data is the best indicator of success or potential problems, it should be measured regularly and frequently and be transparent to all stakeholders in the organisation and the whole value chain, according to the principle of knowledge by knowledge.
CARRY OUT REGULAR TESTS ON PIGS
Strengths, weaknesses, opportunities and threats (SWOT) are factors that together give your team a comprehensive picture of your supply chain, including its vulnerabilities. If you do the same when searching for suppliers and then combine the data, you will get an even clearer picture of your total risk map. In this way, your company’s purchasing power can be increased when missed opportunities are identified to ensure that the situation does not recur. With more accurate and complete supplier information, your team can also investigate product quality defects and delays in delivery to take corrective action or, in the worst case, decide to terminate the relationship.
Shortcomings in the supply chain can come from multiple sources, often involving secondary, tertiary and even fourth tier suppliers. Implementing appropriate strategies to identify and mitigate the impact of these vulnerabilities is a major challenge for electronics manufacturers operating in today’s global environment. Once you have taken this need into account, it is time to man up and leave the post.