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Enhancing supplychainresilience as well as supplychainvisibility is crucial in today’s interconnected world. SupplyChainResilience refers to a supplychain’s ability to withstand and recover from unexpected events.
Supplychainvisibility has been the missing link since the shockwaves of 2020 rippled throughout the world and consumers felt the impacts of broad-based supplychain issues. But what does supplychainvisibility mean? The reason boils down to a single word— barriers.
Key elements include diversified sourcing, real-timevisibility, strategic inventory management, and the ability to quickly respond to disruptions. Companies that had invested in semiconductor supplychainresilience were able to maintain production and avoid costly delays.
If a supplier is struggling with cash flow or facing bankruptcy, it may not be able to fulfill orders on time or maintain the quality of its products. This involves regularly reviewing against established key performance indicators (KPIs), such as on-time delivery rates, defect rates, and compliance status.
Effective procurement risk management entails identifying, assessing, and mitigating these risks to ensure a resilient and efficient supplychain. Types of Procurement Risks Supply Risks – Supply risks involve factors that can disrupt the availability, quality, or timely delivery of goods and services.
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