06 Oct 2020 -

Reduce risk by avoiding single-supplier trap, says ISM’s CEO

A&D companies should take steps to avoid over-reliance on single-source suppliers, cautions ISM (Institute for Supply Management) CEO, Thomas Derry

“One of the main drivers in efficiency of supply chains is to get down to the minimum number of suppliers and leverage your spend volume, directing as much as you can toward the supplier who can provide the best possible price,” Derry is reported to say in this SME.ORG article.

SME.ORG reports, “The A&D sector carries more inventory than other sectors, and for that reason it was not hit quite as hard as other manufacturing sectors when supply lines frayed or broke. But mitigating the reliance on single-source suppliers is a key issue to consider moving forward.”

“We all knew about the Chinese New Year and the interruption that comes with that,” Derry said. “We didn’t anticipate the extension of that Chinese New Year holiday by several weeks or a month by the outbreak of the coronavirus. We didn’t anticipate not being able to replenish our stocks.”

Despite the risks of relying on single-source suppliers, diversifying the supply chain may not always be possible, said Sam Jacobs, associate managing director with the cyber-risk practice of Kroll, a division of Duff & Phelps.

You may also wish to consult an expert in electronics component supply. With more than 27 years of supply-chain expertise, we are ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics.

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