One of the most critical components of any successful business is its tools, which is unquestionably true for supply chain businesses. Damage to essential equipment can cause disruptions and requires preparation for the fastest possible fix.
Prepare and Identify
The supply chain industry requires highly specialized machinery, some of which require a long lead-time for replacement.
With this in mind, it is crucial to ensure that preventive strategies are in place to manage this risk effectively. Some basic due diligence exercises to implement include:
• Document all key equipment.
• Identify all spare parts that are critical to operations
• Find, vet and document all options for repair
• Find, vet and document all options for rental equipment
While this list presents a good starting point for developing a continuity plan for critical equipment, there are other steps to consider. Keeping extra inventory on hand as a backup in the event of delays and outsourcing work during a stoppage can help make up for any lost time due to critical equipment failure.
As more technologically advanced equipment becomes available with the ability to complete tasks more efficiently, there are also added risks involved with it. Cyber threats are growing daily, and many manufacturing and supply chain organizations are not prepared for the type of attacks that could ensue. This makes minimizing cyber risks through adequately training employees on the importance of cyber hygiene a must in today’s unique threat environment.
Turning your supply chain risks into advantages is key to staying ahead of the curve. Adapting strategies for the future of work, supply chain resilience, and digital maturity can help you keep pace and drive performance amidst economic demand. Talk to your trusted RCM&D advisor today for more on supply chain risks.