Avoid Three Key Supply-Chain Land Mines

Be aware that not all risks are obvious, prepare for the unexpected, and train employees on risk-management actions.

Managing supply-chain risk requires the ability to effectively and continuously apply three pillars of risk mitigation. Similar to the three legs of a stool, these are of equal importance, and when combined create the foundation for a comprehensive risk-management strategy.

1. Look Beyond the Obvious
Some organizations focus on mitigating risks that are palpable and overlook less-obvious ones. For example, are you aware of the risks that exist throughout the chain of custody for critical purchase components?

Many distributors source products and equipment components from offshore sources whose quality standards are often less robust than in North America. I worked with an organization where the keys on the keyboard of an important piece of equipment were sticking. After an exhaustive analysis, the fault was found to be a process change by a subtier supplier (i.e., a supplier to a subcontractor), which had reduced the amount of dielectric grease applied between keys.

What mechanism do you have in place to confirm the origin of critical equipment or components? How are you able to ensure consistent quality of these goods?

 

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