If there’s one lesson for businesses to take away from the pandemic, it’s that the only constant we can be entirely assured of changes itself. Nothing lasts forever and it’s important not to fall into the trap of getting too comfortable with any given situation.
Fail to prepare and you prepare to fail, after all, and risk assessments are an absolute must for all companies, irrespective of size or sector, so you can see what pitfalls are likely to present themselves and what you can do to work around future obstacles.
Where your supply chain is concerned, it’s especially important to have plans in place that can help you mitigate the risks – of which there are many! Part of the problem with supply chains is that they can be incredibly sprawling, covering all four corners of the globe, so predicting future problems can be difficult.
You could be faced with natural disasters and acts of war one month and then be hit with data breaches, theft, or supplier bankruptcy the next. With so many people involved, it can quickly become very complicated indeed, with the end result being damage to your business operations… and even potentially your reputation.
Supply chain disruptions can even put you out of business, which is why it’s so vital that you do have plans to prepare for and reduce the impact that issues can have. Here are a few top tips from the Bombyx PLM team to help you mitigate the risks posed by your supply chain. Which will you implement first?
Before you work with anyone, always do your research into the reputation of your suppliers. Make sure they maintain certain standards of service and that their products are of good quality.
Also make sure you verify how they treat their staff members, where they source their materials, and how well they work with others. Doing due diligence where their finances are concerned can also help you decide whether you want to work with them long-term.
It can be useful to know what risks your suppliers might face themselves, whether that’s a country risk, regulatory compliance, political circumstances or local economic issues, as situations such as these could well have an impact on you and your operations, as well.
PLM software and technology can help you reduce development time, identify potential delivery and cost issues, steer clear of poor design decisions, provide you with early visibility, ensure quality and compliance – and a whole lot more.
It provides you with a centralised system to manage all the information related to your products, helping you to adopt a comprehensive approach to design, research, and development, as well as allowing you to operate more flexibly, making changes as and when appropriate based on the data you’re presented with.
Avoid building vulnerabilities in your supply chain by making sure you have several sources for your products and materials.
You may be tempted by the lowest costs available but having a list of secondary suppliers can be useful to help drive down the risks involved. You can also help minimise the risks associated with different regions and countries by localising your supply chain as much as possible.
Risk assessments and reviews should be carried out regularly so you can identify any changes in your supply chain and act accordingly, thus minimising the impact that potential disruptions may have.
With the rise of the Internet of Things showing no sign of slowing down, it’s essential that you’re aware of the risks posed by the likes of malware, hacking, phishing, ransomware and so on. Implement compliance standards for all your third-party vendors, carry out robust vendor risk assessments and introduce security controls to restrict system access.
If you’d like any further advice, get in touch with the Bombyx PLM team today to see what we can do to help you and your business grow and develop in 2022 and beyond.