What are the best strategies to secure raw material supply in times of crisis?

1 Diversify your sources

One of the most effective ways to reduce your dependence on a single or limited number of suppliers is to diversify your sources of raw materials. This means finding alternative suppliers from different regions, countries, or continents, who can offer similar or comparable quality and price. By diversifying your sources, you can reduce the risk of supply shortages, price fluctuations, or trade barriers that may affect one or some of your suppliers. You can also leverage your bargaining power and negotiate better terms and conditions with your suppliers.

2 Build long-term relationships

Another strategy to secure your raw material supply is to build long-term and mutually beneficial relationships with your suppliers. This means establishing trust, communication, and collaboration with your suppliers, and treating them as strategic partners rather than transactional vendors. By building long-term relationships, you can ensure a more stable and reliable supply of raw materials, as well as access to preferential prices, discounts, or incentives. You can also share information, feedback, and innovation with your suppliers, and jointly address any issues or challenges that may arise.

4 Adopt circular practices

A fourth strategy to secure your raw material supply is to adopt circular practices that reduce your consumption and waste of raw materials. This means designing your products and processes to minimize the use of virgin materials, maximize the reuse and recycling of materials, and extend the lifespan and functionality of products. By adopting circular practices, you can lower your demand and dependence on external sources of raw materials, as well as reduce your environmental impact and operational costs. You can also create new value streams and opportunities from your waste and by-products.

5 Explore alternative materials

A fifth strategy to secure your raw material supply is to explore alternative materials that can substitute or complement your existing materials. This means researching and testing new or emerging materials that have similar or superior properties and performance to your current materials, but are more abundant, accessible, or affordable. By exploring alternative materials, you can diversify your material portfolio, enhance your product quality and differentiation, and mitigate the risks of material scarcity or obsolescence.

6 Invest in digital technologies

A sixth strategy to secure your raw material supply is to invest in digital technologies that can improve your visibility, efficiency, and agility in your supply chain. This means using tools such as data analytics, artificial intelligence, blockchain, or cloud computing to collect, process, and share data and insights on your raw material supply and demand, as well as to automate, optimize, and coordinate your sourcing, procurement, and logistics activities. By investing in digital technologies, you can increase your transparency and traceability of your raw material flows, reduce your errors and delays, and respond faster and better to any changes or disruptions in your supply chain.