The right materials at the right price – Supply Chain calamities and solutions

As a manufacturer, what goes into your product is just as important as the product itself. There is huge demand from retailers and customers to ensure that the items they buy or sell are of consistent quality and properly sourced.

Have you noticed the price of Brazil nuts this year? This is due to a global shortage due to drought in Bolivia and Brazil where they are grown. That’s fine if you are not relying on Brazil nuts in your manufacturing. Last year the problem was almonds which are exclusively grown in Florida and Turkey.  This highlights a problem with global agriculture – the geographic locations of some food stuffs are very localised. If these areas are struck by drought the whole global supply is affected, which results in high prices. As a manufacturer do you stop producing the product, do you supplement for another ingredient and compromise quality, do you absorb the price rise or do you pass it on to the customer? All these are questions you need to be asking about many things that may be in your supply chain and it’s not just restricted to food. Many minerals can also have restricted availability depending on global use and if the rate of abstraction or manufacture can maintain that level of use. Remember the rise in the price of steel in the lead up to the China Olympics? Some elements that are sourced from geopolitically unstable countries can be susceptible to fluctuations in supply and can be sometimes the target of terrorists either to fund their activities or to destabilise local government.

We are currently working with central government looking at the availability of resources and projecting into the future for the purposes of on-going supply, materials security and scarcity.

There are many tools available to help you ascertain the susceptibility of products in your supply chain to disruption but do you have the time to keep up to date? The experts at Credibly Green have a great wealth of knowledge about susceptible materials and can help you identify risks to your supply chain and help you put in place an action plan to mitigate any future potential problems.

As a business you are likely to be procuring and operating in more demanding environments. We at Credibly Green can help identify the challenges, vulnerabilities and opportunities around your sustainable supply network when procuring goods and services ‘through life’. The aim of this through life approach is to reduce the likelihood and/or the impact of supply disruptions through risk identification (disruptions and leakage points), assessment (occurrence and impact), action (strategy and mitigation) and monitoring (reduce risk) to ensure your business operates efficiently and effectively.

Call us on 01756 552423 or email info@crediblygreen.com for more information. If our analysis is incorporated into a business continuity plan it keeps your stakeholders happy, including shareholders and potential investors. This is not something you should be putting off until disaster strikes. Much better (more cost effective) to stop the fire starting than to manically fight it once it’s out of control.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s