Automotive

Beware of Supply Chain Risks Where you May Not Be Looking

Beware of Supply Chain Risks Where you May Not Be Looking

I recently came across an insightful article (Beware of Risk at Low-Tier Suppliers, Nov. 2011) that points to a growing need for procurement departments to increase their focus on sub contractors from main suppliers.

Referencing a global survey by the Business Continuity Institute, the article notes that about 85 percent of companies suffered at least one disruption in their supply chain, and 40 percent of those disruptions result from issues below immediate vendors. 

Some of my other key takeaways from the article:

Engaging Key Suppliers

Engaging Key Suppliers

Suppliers and OEMs have an important stake in each others' success. Often, suppliers have deep expertise in cost drivers and new technologies relevant to the OEM's products. Leveraging this relationship through collaboration can help spur innovation and drive gains for both parties.

In this Executive Insight Podcast, Sundeep Maini, Principle, describes how suppliers have worked very closely and collaboratively with OEMs to design efficiencies in their product development, helping them launch industry-leading products.

Pages