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If you change the formula from speed and a bottom line to Risk vs. Risilence, the answer will change. Risilience means larger inventories, more employees (handling inventory), multiple suppliers, and higher costs. However, becoming resilient has its own risks - a loss of competitiveness. The following are some ways to become more resilient with lower risks.
Topics: "onshore" your suppliers move from global to national, national to regional, regional to local JIT +X% for the items that are not available locally or based on materials that cannot be onshored - buy X% additional materials to ensure supply Tier your suppliers - ensure one is local Create at least 2 tiers to your suppliers with some overlap 80/20 Your Suppliers: Tier 1 is the main supplier @80%, Tier 2 can provide the same, buy less - just enough to keep them interested - @20%
If you change the formula from speed and a bottom line to Risk vs. Risilence, the answer will change. Risilience means larger inventories, more employees (handling inventory), multiple suppliers, and higher costs. However, becoming resilient has its own risks - a loss of competitiveness. The following are some ways to become more resilient with lower risks.
Topics: "onshore" your suppliers move from global to national, national to regional, regional to local JIT +X% for the items that are not available locally or based on materials that cannot be onshored - buy X% additional materials to ensure supply Tier your suppliers - ensure one is local Create at least 2 tiers to your suppliers with some overlap 80/20 Your Suppliers: Tier 1 is the main supplier @80%, Tier 2 can provide the same, buy less - just enough to keep them interested - @20%