Technology companies have many questions about managing their supply chain risks. The most common questions come from all directions – legal, finance, HR and IT.
So as executives find themselves wanting more information about risks facing their supply chains, we decided to take a closer look at the supply chain risks.
Question: Is supply chain risk something we should be concerned about?
Answer: In today’s world, supply chains are more vulnerable than ever and the potential impact can come from many sources. Supply chains are complex and when you magnify the impact of disruption, the impact can be great to a company. Even the smallest, most isolated problems, can give a technology company headaches. Technology companies have an increased reliance on the supply chain and those risks need to be managed.
Question: Since we mostly use external suppliers, isn’t supply chain risk their responsibility?
Answer: For many technology firms, suppliers are one of the biggest sources of supply chain concerns. Having a diverse list of suppliers is difficult for some companies. Some suppliers rely on the same vendors for raw materials and this can create a pyramid effect on risks.
Question: Creating Supply Chain Resiliency is Ideal.
Answer: Creating supply chain resiliency is ideal. But many technology firms don’t know where to start. Consider the following:
- Creation of methods that allow you to track and monitor supply chain events.
- Identify any patterns that may emerge as you track and monitor them.
- Find ways you can address workable solutions to your supply chain risks without increasing costs to your organization.
- Establish a close relationship with all of your supply chain partners. Together you can begin to address the risks and avoid disruptions.
- Outline a formal document that defines how you will monitor your supply chain partners and establish policies and procedures that will be a guide to addressing issues with they arise.
Technology companies should concentrate on the most critical areas that make them vulnerable. Because being a resilient technology company can make the difference between survival and failure.
For more information about supply chain risks for technology firms, please contact a TechAssure member.