Supply Risks: Supply Interruption
“The good news is our sales forecast has increased. The bad news is,
I can’t increase production
until I find replacements for the constrained
parts I need.”
“I believe that we are being charged higher prices than necessary by my contract manufacturer, but can I prove it? How do I solve the problem?”
Some typical scenarios:
In preparation for the iPhone delivery last summer, early in the year, Apple stockpiled a specific kind of memory. Unfortunately, other manufacturers for whom this was a strategic part, faced shutdowns and missed peak season sales.
A consumer electronics manufacturer had 4 critical parts in a new product introduction that increased in price from $2 each to $8. This reduced both their margins and time to market. The company believes their contract manufacturer was overcharging them, but had no way to prove it or find alternate parts themselves.
Why haven’t manufacturers solved these problems with their advanced supply chain planning and management solutions?
What’s needed is trending information for strategic parts that goes beyond a company’s approved supply chain. Today’s enterprise and supply chain planning solutions don’t have the ability to bring in data from the global, open market. There are limits to what’s within the walls of their enterprise and approved vendor lists.
New Momentum’s Supply Risk Management solution takes you beyond your supply chain to the global, open market to provide the kind of trending information you need to minimize supply disruptions.