How Smaller Manufacturers Can Develop Risk Management Strategies for Their Supply Chains
The COVID-19 pandemic highlighted vulnerabilities within supply chains, particularly for smaller manufacturers. In a recent MEP National Network™ webinar, Gary Steinberg from California Manufacturing Technology Consulting (CMTC) and Chris Scafario from the Delaware Valley Industrial Resource Center (DVIRC) discussed strategies for small and medium-sized manufacturers (SMMs) to identify and mitigate supply chain risks. Common risks include disruptions from natural disasters, labor disputes, and pandemics, as well as issues with raw material delays and procurement. Mistakes like relying on single source suppliers and lack of coordination between procurement and sales can exacerbate these risks.
To build a resilient supply chain, manufacturers should align their supply chain strategy with their business goals and engage in strategic planning, inventory management, and vendor management. This includes classifying raw materials by criticality, negotiating contracts, and maintaining accurate inventory management. Developing redundancy by funding secondary tools or splitting orders can also help mitigate risks. Leveraging data, forming dedicated teams, running simulations, and developing contingency plans are essential steps for proactive supply chain management. By addressing these areas, SMMs can better navigate current disruptions and prepare for future challenges.
For more detailed information, you can read the full article on the NIST MEP Innovation Blog Risk Management Strategies for Supply Chains