Moving out of Supply Chain after economic crisis

Purchasers and supply chain executives caution - during economy rebound

With the economic rebound expected to happen soon in the international market place, there are several aspects purchasing and supply chain executives need to take care of

Understand & ensure that the supplier is well informed – Recession has hit every on in the chain (Since its supply chains competing against each other and not companies). So it is important to ensure that the supplier is informed of the rebound and make a personal visit. This visit can ensure the availability of capacity, employee skills and a reaudit of the capability of the suppliers to bounce back. This is also a time for the OEM’s or supply chain captains to understand and listen to the problems of the suppliers. Its also worthy to ask how the supplier has survived the recession, to understand the resilience of the supplier.

Go till the tier 2 – Though most companies try to manage only the tier 1 companies, it is important to reuderstand the tier 2 companies of the supply chain. This ensures that the supplies are being streamlined and also that the tier 2 is able to ramp up production.

Check for new opportunities – Rebounce is a good time to check the existing structure of the supply chain. Check for new opportunities with existing suppliers and also check for new suppliers for old activities. New opportunities might open up because of technological changes, new cost reduction opportunities, change in supplier role and availability of new and better suppliers.