Your inventory levels are at risk due to supplier delays. How will you navigate this unexpected challenge?

In Inventory world if you rely solely on one source for any product it is not a matter of if they have issues getting making or shipping something it is a guaranteed When. But if this is how your company chooses to do business then it is imperative you notify whoever you report to as soon as possible to see if alternate solutions can be explored. If no way around the circumstance then send emails so you have referable proof to those you report to as well as vendor/ suppliers.

In the dynamic landscape of procurement and inventory management, relying on a single supplier can be a ticking time bomb. My approach to diversification involves creating a resilient supply network using specific tools and methodologies. For instance, I employed Lean Six Sigma DMAIC to assess supplier performance metrics, identifying bottlenecks before they became critical. Additionally, I utilized the Kraljic Matrix to categorize suppliers by risk and importance, enabling a strategic multi-tiered supplier strategy. Integrating these insights with real-time inventory data from ERP systems like SAP and Zoho Inventory ensured continuous supply flow and optimized cost savings through competitive bidding.

To address stock shortages effectively, consider the following: Air Freight: Use air freight to quickly replenish critical inventory and cover shortfalls during supplier delays. This method provides fast delivery for urgent items. Local Suppliers: Engage local suppliers to provide immediate stock replenishment. Local sourcing can reduce lead times and help bridge gaps while waiting for primary suppliers. Inventory Study: Conduct a thorough inventory analysis to identify which items are most affected by shortages. This helps in prioritizing replenishment efforts. Adjust Reorder Points (ROP): Make ROPs dynamic by adjusting them based on real-time inventory levels and demand forecasts.