What do you do if your supplier's availability or capabilities change?

Procurement need regular assessment of parameters involved in it , supplier's capabilities is one of it's core parameter which need to be taken care of .

Well they say the only thing permanent in the world is change! So, change is inevitable what we need to see is is it a positive change or negative one? Once we confirms that next step is to analyze how it will gonna affect our business. If things are turning towards positivity then we can take a sigh of relief in other case we will communicate with supplier and try to mitigate the affect. At the same time start looking for alternate option in order to prevent any negative affect on your operation and deadlines. If possible try to support the current supplier to mitigate his challenges as this kind of relation will be crucial in coming times for him to go beyond his capacities to support your target.

The change can result in a net positive or negative. Have their services downgraded or upgraded. Important that you need to assess their changes against your requirements. The assessment of the supplier is the most crucial step. You may have regulatory requirements that are no longer met as the supplier has lost their certification. The supplier may have added capability that enables you to vertically scale your supplier list and strengthen your business relationship with a price advantage for you due to the added business based on how you negotiate.

If a supplier's availability or capabilities change: Immediately evaluate the impact on supply chain and project timelines. Communicate with the supplier to understand the scope and duration of changes. Seek alternative suppliers to fill potential gaps in supply. Adjust procurement strategy to accommodate new timelines or capabilities. Collaborate with stakeholders to set realistic expectations and mitigation plans. Update inventory management practices to prevent stockouts. Monitor the situation for any further changes and adapt accordingly. Document insights for future sourcing risk management.

Me comunicaria con el proveedor, para comprender si hubo algun problema y evitar que afecte nuestra relacion comercial. Si no hay cambios analizaria el impacto y como nos afecta en nuestra cadena. Seguramente buscaria proveedores alternativos que puedan cumplir con nuestras necesidades y a su vez trataria de negociar nuevos terminos con el actual para que ambos nos adaptemos a la nueva situacion (Plazos de entrega, Ajustes de precio, etc.) Finalmente comenzaria un seguimiento, para ver mejoras.

I'll try to get new and potential suppliers but, Implementing changes to your supply chain can be challenging, but careful planning and execution are key. Transition to the new supplier methodically, ensuring that there is minimal impact on your production process. It may involve phasing out the old supplier while gradually increasing orders with the new one. Keep monitoring the situation closely to address any issues that arise during the transition.

Apply the Krajlik Matrix on Procurement Targetting and supply risk assessment (strategic, bottleneck, leverage, non critical). If it falls under the strategic or bottleneck, it is important you monitor performance reviews on a periodic basis, and business review with senior stakeholders and suppliers owners. This way, you get first hand info, activities like scheduled shutdown, issues, and can anticipate and can plan ahead like stocking in advance, or developing alternatives. If it falls under Leverage or Non Critical, you have options to source from other suppliers or award to two or three, and monitor performance, such that you give the bigger pie to the best performer, hence, creating competition and increasing quality and value add.