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.

How much liquidity is tied up in your warehouse?

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