Facing potential ingredient shortages in production, how can you strategize to minimize their impact?

Understand the Ingredient Landscape: Carry out extensive research before such seasons or regions in particular constrain the supply. Build Strong Supplier Networks: Interaction with dependable suppliers and local agriculture is required to maintain steady supply of raw materials. Diversify Sourcing Channels: There is a need to source from partners around the world so that one is not solely dependent on one supplier. Forecasting and Planning: Accurate demand forecast has to be adopted so that production plans are changed accordingly. Explore Alternative Ingredients: Recognize alternatives that do not tear down the product when the primary ingredients are out of stock

It is essential to understand your supply base. One of the pitfalls we fall into is the assumption that having more than one supplier means that one has alternate supply chains for the raw material. Remember to double-check the supplier's supply base to ascertain that you have alternate supply chains. Do you know your supplier's sub-supplier(s)? Does your supplier manufacture or distribute the raw materials you buy? If you do not know the answers to these questions, you may be sourcing the same material from distributors versus two different manufacturers. You could easily have the same supply risk despite having two different suppliers.

Em tempos de escassez temos que olhar para nosso estoque primeiro para checar as melhores alternativas e esta pode ser uma oportunidade de reduzir o estoque de algum item com desvio significativo de demanda!

Inventory management—wow. On the one hand, safety stock at the supplier is vital for the security of supply; on the other hand, it is expensive. Assuming shelflife allows, there is the issue of storage within CGMP. How much storage is enough? Who owns liability? Are contingency plans in place? Are we focused on the suitable critical raw materials? There is hope. Make sure that your program is fit for purpose.

Where security of supply is concerned, you are as strong as your relationships. Working together to understand trends, ensure business continuity, and mutually optimize the supply chain are some ingredients of excellent supplier relationship management (SRM) programs.

I agree with all of the improvements needed that everyone suggests however, the main ingredient for not running short is a proper and accurate sales forecast. Often times the purchasing agent is put on the spot without notice of increased order forecasts. Build a good relationship with the Customer first. Trust what they tell you. Knowing your Customers future needs is important for cost savings as well during this time. A Purchase before the shortage causes forced majeures so you are able to do larger stock purchases saving with full truck loads rather than LTL pricing. Buying in bulk when the opportunity presents itself on ingredients while still available can save costs as well as building an overall relationship from cradle to grave.