Your product availability is dwindling due to supplier quality issues. How will you manage the sudden drop?

First, I gathered my team to assess the impact. We identified the most affected top-selling items and analyzed sales trends, allowing us to prioritize our response effectively.

Transparency between both parties is vital at this point of time. There are times we can support technically, and there are times we can try to be more humane and absorb some of the lashes in order to give time and chances for our suppliers to recover.

Reducing dependency on a single supplier is crucial. Identify and qualify alternative suppliers, establishing relationships with multiple sources to ensure a resilient supply chain. Conduct thorough assessments of potential suppliers to confirm they meet your quality standards.

One thing I've found helpful is always engaging your supplier. You need to understand their challenges and also understand the pressure they put into your business by not supplying what's required. Even if you can have an alternative supply, always get commitment from them on when they plan to recover and how the will provide or supply what you already ordered. Keep in touch, and keep them accountable for service delivery

I scheduled a call with the supplier's account manager. They admitted to a lapse in quality control but offered a solution through a secondary manufacturer. I negotiated an expedited production schedule with the new supplier, offering a premium for faster delivery.

To maximize availability, we rerouted products from low-demand regions to high-demand ones and adjusted our marketing promotions to focus on items with healthy inventory levels.

Temporarily boost inventory levels of critical components to buffer against supply disruptions. Implement safety stock strategies to maintain a reserve of essential items, ensuring you have enough on hand to continue operations smoothly.

We optimized our logistics network by choosing the fastest shipping partners and setting up temporary storage near distribution centers. We also implemented real-time tracking for the expedited orders to ensure quick processing and dispatch upon arrival.

I always believe in having two or three suppliers that you can always buy from and compare quality and pricing. I will optimise by ensuring that I can be able to source my products of choice at other alternative places

Managing a sudden drop in product availability due to supplier quality issues requires clear and proactive communication. In my "Inventory Optimization Project," we faced similar challenges and implemented a stakeholder communication plan. This method involved regular updates to all stakeholders, including suppliers, customers, and internal teams, about the current status and expected resolutions. We utilized tools like Slack and email updates for transparency and real-time information sharing. Clear communication helped manage expectations, maintain customer trust, and align internal efforts towards sourcing alternative suppliers, thereby mitigating the impact of the supply disruption.

Supply chains need to periodically assess these risks by looking at- 1. Are there sole suppliers for any of the components? 2. What are the possible supply risks with this supplier? Production risks, logistics risks, tier-2 supply risks and so on. 3. Work with the supplier to mitigate these risks. Also make own arrangements in terms of buffers. Coal is an important raw material for many power plants in India. Monsoons disrupt the supply chains. Hence, power plants routinely keep more days of stock during monsoons.