Coronavirus vs. your SRM process. Anything to worry about?

The decalogue of questions to think of if any of your tiers in supply chain may be affected by coronavirus from Wuhan, China. Think about these tactical and strategic questions:

  1. which suppliers quoted certain components at which specification revision within last years?
  2. if my counterparts have done over last year similar sourcing activities?
  3. what is the full value stream map incl. tier 2, 3, 4… to deliver component at risk?
  4. what can be Total Cost of Acquisition of new source?
  5. which suppliers from our centrally maintained supply base capability matrix are capable to replace weak link in the supply chain?
  6. what are the risks of changing source based on centrally maintained purchasing risk register?
  7. which suppliers within supply chain due to fragile financial situation may fall due to interruption in cash flow inflow related to production stoppage?
  8. what are the potential mid term bottlenecks in supply chain as my competitors will likely focus on  the rare resources to (sudden shrink in supply)?
  9. what is the free capacity of my alternative sources to help me?
  10. and finally “a friend in need is a friend indeed”, how have I treated my suppliers? can I feel as preferred customer?

If you are in panic mode or you seek to improve your processes and tools, please consider to contact us, as we may help:

  • short term with our network of skilled manufacturers of castings, forgings, electronics, ECM, assemblies, metal processing, stamping in Central Eastern Europe or India link
  • long term improving your organization capability on cognitive supply base management strategies link
  • the right digital sourcing and supplier relationship management system will help to deal with above questions within 30 minutes, without screening emails, Excel files, Sharepoint, making noise and wasting time in your organization and externally. Consider equipping your organization with Eveneum Strategic Sourcing Application ecosystem link

News on Supply Chain interruptions related to coronavirus from media:

Automotive News Europe – Hyundai Foxconn

See some interviews on what thrills people in purchasing. Dealing with ambiguity is in the list.