Suppliers are disrupting your material flow process. How will you navigate through the delays?

A comprehensive material plan should include safety stock, alternate suppliers, and contingency planning for inevitable supply chain disruptions. Your company's Integrated Business Planning Model (or SIOP program) should incorporate potential disruptions. Additionally, communicating with your suppliers, depending on the type of relationship you have with them, may present collaborative opportunities to minimize disruptions. For commodity suppliers or those with whom you have a transactional relationship, you may choose to leverage competitors and other options. For supplier-partners, it is more feasible to develop joint supply programs to manage and reduce risks collaboratively.

Implement techniques such as just-in-time (JIT) and safety stock to manage inventory and reduce dependency on critical materials. Use Advanced Planning Systems (APS) to reschedule production in real time and minimize downtime. Develop a supplier risk management plan to identify and mitigate potential risks. Consider dual sourcing, working with multiple suppliers to ensure redundancy. Maintain constant communication with the sales team to manage customer expectations and explore alternative solutions. These actions will help maintain operational efficiency in the face of delays.

I actually think that a proper safety stock will cure most manufacturing delays but you have to remember to reset these numbers to account for the busy season and the lead time. I just recently had to explain to our VP that with a 5 month lead time you have to order 6 months in advance and you need to account for the busy season at least 6 months in advance. He did not listen and we had to air freight to cover the shortages. I don't think he will make that mistake again.

To manage these delays, implement robust risk management strategies and diversify your supplier base through multi-sourcing to reduce reliance on single sources. Leverage advanced analytics, AI-driven demand forecasting, and real-time monitoring with IoT for supply chain activities. Strengthen supplier relationships through regular communication, performance analysis, and collaborative planning. Incorporate reserve stock, safety stock, or alternative materials to mitigate immediate impacts. Embrace continuous improvement: Use Six Sigma and root cause analysis to understand disruptions and develop preventative strategies to increase overall operational resilience.