In this video, Bill Remy, CEO of TBM Consulting Group, continues his “Five Ways Manufacturers Can Bolster Agility” video series focusing on strategy #4, enhancing productivity and flexibility within manufacturing supply chains through risk mitigation strategies.
Joining him is Chip Barth, the Managing Director of Supply Chain at TBM Consulting Group where they talk about top concerns for manufacturers, actions to take to reduce risk and how to get started on a risk mitigation plan.
Read the summary below or view the video above to understand risk factors and solutions that can impact productivity in your manufacturing business.
The discussion begins with an overview of common supply chain risks identified by clients and companies. These are primarily financial risks, which encompass both costs and financial stability of the organizations or their suppliers, and delivery risks that include service and lead time concerns. Additional challenges mentioned involve transportation, quality, and geopolitical issues.
Quality issues, particularly in industries like aviation and with Original Equipment Manufacturers (OEMs), are highlighted for their potential to make headlines. The conversation underscores the severe impact of quality problems, which can lead to recalls, damage to reputation, and other long-term consequences.
To mitigate these risks, Chip suggests focusing on the quality management system (QMS) and overall quality controls. This includes understanding critical components, employing failure mode and effects analysis (FMEA), and setting up control plans. These measures aim to ensure the integrity of inbound raw materials and finished products. The importance of collaborating between procurement and supplier quality functions to monitor and develop the supply base for overall wins is emphasized.
For supply chain professionals wondering how to start developing a risk mitigation plan amid their busy schedules, the advice is to differentiate between critical and non-critical components and assess supplier capacities. This involves identifying bottlenecks and constraints to prioritize suppliers based on their capacity and the criticality of their components to the business.
Overall, Bill and Chip provided an insightful guide for manufacturers seeking to understand and address supply chain risks, emphasizing quality control, strategic prioritization of suppliers, and the importance of cross-functional collaboration to mitigate these risks effectively.
Tune into the final video in the series where Bill Remy meets with Gary Hoover, Vice President Global Private Equity Practice to talk about Environmental, Social, and Governance (ESG) considerations in enhancing productivity.
Check out the other episodes of Bill Remy’s “Five Ways Manufacturers Can Bolster Agility” video series.
Strategy #1: Labor Strategies Reimagined for a More Productive Workforce
Strategy #2: Level Up Productivity In Manufacturing
Strategy #3: Avoid Technology FOMO
Strategy #4: Supply Chain Risk and Mitigation Strategies in Manufacturing
Strategy #5: Find Hidden Opportunities in ESG – Coming soon
