To navigate supply chain delays affecting production costs, I’ll first diversify suppliers to reduce dependency on a single source and establish backup options for critical materials. I’ll improve demand forecasting to plan inventory more effectively, balancing costs with availability. Strengthening relationships with suppliers through clear communication and collaboration can help secure priority access or favorable terms. Additionally, I’ll explore local sourcing to minimize transportation delays and costs. Internally, I’ll optimize workflows and adjust production schedules to mitigate downtime, ensuring minimal disruption to operations while controlling costs.

Based on the historical record, identify the average lead time for procuring raw material and calculate safety stock accordingly. Supervisors and Procurement should coordinate and communicate well to update material stock in SAP periodically. Set reorder point at safety stock level in SAP so that auto purchase order goes to the relevant supplier whenever the minimum quantity value is reached. Internal Audit could be conducted to assess the material stock updating procedure in regular frequency. Top Management team should understand the geopolitical situation and demand pattern changes to adjust their production planning. Sales, Production & Procurement team should meet for production planning and adherence review on weekly basis.

Facing supply chain delays, I would navigate the challenges by: Assessing Impact: Quickly identify which materials or components are most affected and how they impact production. Diversifying Suppliers: Explore alternative suppliers or local sources to reduce reliance on a single chain. Optimising Inventory: Implement better inventory management to maintain buffer stock, reducing downtime. Enhancing Communication: Collaborate closely with suppliers to track updates and mitigate delays in real time. Leveraging Technology: Use data analytics to predict trends and optimise production schedules.

Adding new parallel sources - Controlling the contractor and receiving a financial penalty - Creating an alarm to control the inventory - Creating a contingency plan for quick purchase from existing sources - Buying parts from similar companies