Diversifying the supplier base can deliver powerful advantages such as resilience against changes and disruptions in supply chains. But diversified supply chain is subject to the analysis that clarifies the tradeoffs. What is abundantly clear is that it’s not feasible or appropriate to try and… Read More »The decision making for diversified supply chain
Introducing supplier diversification into your strategy demands a thorough evaluation as well as a new potential risk for your procurement. Because your business needs to manage the communication, the quality of products/services and the shipping nodes separately for each supplier. Imagine the complexity added once… Read More »What needs to be done prior to the supplier diversification?
In times of soaring shipping costs and extended lead times due to global disruptions, businesses ask: Can diverse suppliers enhance your resilience? The key lies in enhancing supply chain resilience. The COVID-19 impact: Shipping a 40ft container from China to US jumped from $2,500 in… Read More »Supply Chain Resilience: Strategies with Diverse Suppliers
Suppliers offer lower Price Per Unit (PPU) for the increments or multiples of the Minimum Order Quantity (MOQ). They provide a price advantage for high volume orders due to the cost efficiency of manufacturing large quantity batches at once. However, switching between smaller quantities of… Read More »Does Having Multiple Suppliers Cost More?
In light of the recent pandemic, supply chain disruptions highlighted the risks of relying solely on a single supplier. Lockdowns in major manufacturing hubs like China halted global supply chains, leaving businesses worldwide dealing with shortages and outages. This crisis underlined the vulnerability of businesses… Read More »The Supplier Diversification Dilemma