Always diversify supplier portfolio and maintain a healthy distribution ratio for the same. Additionally also maintain a minimum lot of inventory as a buffer for emergencies

When a key supplier disappears, securing components requires swift action. Diversify your supplier base immediately and explore alternative materials. Increase safety stock of critical parts while leveraging industry networks for new suppliers. Consider vertical integration for crucial components and implement robust risk assessment. Utilize predictive analytics for supply chain visibility and develop strategic partnerships. Explore 3D printing and invest in R&D for in-house alternatives to ensure long-term stability.

When your supply chain is at risk due to the loss of a key supplier, securing components becomes critical to maintaining operations. There are strategic approaches to mitigate the impact and secure your supply: ? Assess Current Inventory and review of your existing inventory levels of components from the supplier. Identify the on-hand and how long it will last based on current usage rates. ? Identify Alternative Suppliers, who can provide the same components, evaluate their capacity, reliability, and performance history. ? Negotiate with Existing suppliers, reach out to negotiate temporary increases in orders, or expedite shipping for existing suppliers who may have excess inventory. ? Implement a Contingency Plan.

Diversify Suppliers: Relying on a single supplier poses significant risks. Build a network of secondary or tertiary suppliers to ensure continuity. Establish relationships with vendors across different regions to mitigate geographical risks and reduce lead times. Increase Inventory Buffers: In times of uncertainty, stockpiling critical components can help avoid immediate production halts. Consider adjusting your safety stock levels, especially for high-demand components, to create a buffer while searching for new suppliers. Explore Alternative Materials: When specific components are scarce, consider using substitute materials or redesigning parts to maintain production continuity.