How To Mitigate Supply Chain Risk
Risks in Supply Chain. 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.
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?
Research supplier risk
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.
Use PLM consulting
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.
Regular communication with suppliers is essential to identify potential exposure to risks in the supply chain, but historical data can also be analyzed to successfully predict whether
they’ll likely see issues with their suppliers’ financial stability and overall performance.
Risk mapping is also something that businesses might find beneficial, making assumptions and predictions about what the future is going to hold and how the business environment could shift and change in line with this.
Social media monitoring could also prove useful where supply chain risk is concerned, with processes like re-listening and geotagging used to deliver strategic intelligence and allow businesses to gain an idea of potential threats that could affect production.
Another potential way to mitigate the risks across the supply chain could be to make sure that the design of components is standardized. This means that you’ll be able to use them across product lines and enlist the services of numerous suppliers for manufacturing, which can reduce both costs and overall business risks.
Strengthen your cybersecurity defenses
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.