Supply Shortage

bread lines during the Great RecessionWhat to do when there’s an industry-wide shortage?

  • Long Tern Agreements & relationship intimacy (get in bed)
  • Prepay for process capacity, schedule item detail later
  • ITAR Waivers – allow offshore supply
  • Repatriate offshore supply
  • DPASS – jump to the head of the queue
  • Invest in building capacity; at suppliers, set up new suppliers
  • Lobby politicians
  • Redesign product
  • Reduce scrap in-house and at suppliers
  • Supplier process improvements (to free up capacity)
  • Supplier development (lean and six sigma)
  • Stockpile now
  • Go down a level in the suppliers BOM and buy up supply
  • Create a Strategic Supply Czar – integrate and leverage






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