You're facing a supply chain disruption. How do you decide which suppliers to contact first?

Begin by thoroughly evaluating the extent of the disruption and how it affects your operations. Identify which materials are critical to your production process and which suppliers are responsible for providing them. This initial assessment helps in understanding the scope and severity of the issue. Identify the materials that are absolutely essential for your production. These could be specialized chemicals, components, or raw materials that are integral to your manufacturing process. Focus on suppliers that provide these critical materials.

I’d used a Risk criticality matrix on each supplier to determine consequences and probability. This should highlight which supplier have the greatest impact on the business. A fallout of this exercise will let you know which supplier has the largest effect on the business and the probability of getting them back on board.

Suppliers with whom you have established long-standing relationships often understand your needs and operational requirements well. They may be more responsive and proactive in providing solutions or alternative options during disruptions. Leverage these relationships to your advantage by keeping communication channels open and discussing contingency plans. Evaluate the historical reliability and consistency of each supplier. Suppliers known for their consistent delivery performance and quality are likely to handle disruptions more effectively. Conversely, if a supplier has a track record of inconsistency or previous issues, it's crucial to assess their current situation promptly and proactively.

It's prudent to identify and maintain relationships with secondary suppliers for critical materials. These suppliers can serve as backup options in case your primary suppliers encounter difficulties or cannot meet your needs. Regularly assess the capabilities and reliability of secondary suppliers to ensure they can step in when necessary. Implement a diversification strategy for sourcing materials. This involves spreading your sourcing across multiple suppliers or geographic regions. Diversification reduces dependence on any single supplier and enhances resilience to disruptions caused by localized issues, transportation delays, or geopolitical events.

During disruptions, flexibility is essential. Discuss potential adjustments to delivery schedules, expedited shipping options, or changes in payment terms that can accommodate both parties' needs. Negotiating mutually beneficial terms demonstrates collaboration and strengthens the partnership with your suppliers. Understand that suppliers may be managing disruptions with multiple clients. Prioritize your requests based on criticality and impact on your operations. Early communication allows suppliers to plan effectively and allocate resources accordingly to fulfill your requirements.

Reach out to other chemical engineers or industry contacts who may have encountered similar supply chain challenges. They can share their experiences, recommendations for alternative suppliers, or insights into materials that could serve as substitutes. Their knowledge of industry dynamics and supplier networks can be invaluable. Professional networks often include recommendations for reliable suppliers with excess capacity or alternative sourcing options. These recommendations can help you quickly identify potential partners who can fulfill your material needs during disruptions.