The current stop/start cycle of COVID-19 is going to last longer than most want to admit, claims Supply Chain Executive, so use this as the “catalyst to drive a complete reengineering of your supply chain”.
According to the article, there are five immediate actions that supply chain teams should take to enable their organisations to survive:
- Conduct an immediate, honest and quantified “tactical” risk assessment of your supply chain with board oversight. In the past, sourcing was done to find the lowest cost or the lowest landed cost.
- Secure space to hold inventory and develop a risk driven inventory model. Allocating capital and holding inventory is no longer a bad thing; it is now essential.
- Understand how your systems handle backlog through electronic data interchange (EDI), remove the noise from the system and communicate directly with suppliers. There is an immediate need for all companies to go through their ERP system, purge the massive backlogs that likely exist and prioritise EDI releases, so that the parts needed for immediate production are clear and suppliers can forecast true demand out to their supply base.
- Engage the management team and board of directors. Supply chains have never been a board-level issue, but the Coronavirus disease (COVID-19) has the potential to make supply chain failures business killers.
- Where possible, look at regionalising critical components that can be moved. Moving component supply back into the region where production takes place or product is consumed is becoming a strategic imperative.
To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.
For more help with looking at supply chain options, contact Astute Electronics here
