More supply security in 5 steps.
The key points
- Supply security doesn't come from blanket extra stock, but from targeted buffers where failures hurt.
- Step 1 is transparency: which articles are critical, which suppliers are single source?
- Then follow differentiated targets, second sources, longer buffers only for critical items and an early-warning system.
- More stock across the board is the most expensive and weakest path to supply capability.
How do you secure supply in 5 steps?
Why not simply more stock everywhere?
Because blanket extra stock ties up capital exactly where the risk is small, and still leaves the critical gaps open. Supply security is a trade-off with tied-up capital, not a blank cheque for full warehouses. It's solved article by article, along the criticality, not with a one-size-fits-all approach.
The critical article list belongs on the table once a year, not only in the next crisis. Anyone who maintains it in calm times can stay calm in a disruption.
Keep reading
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Inventory & PurchasingInventory optimisation in 3 steps: forecast, optimisation, procurement.
Inventory & PurchasingInventory planning: the second step in inventory management.
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