Multiple suppliers
Most of us know the saying: “don’t put all your eggs in one basket.” It’s a classic pearl of wisdom that applies to any situation involving risk management. Unfortunately, many companies and even countries don’t adhere to it.
Multisourcing is the standard go-to solution for many supply chain managers. This often involves adding new domestic or regional suppliers who service the same supply line. Although this does add a certain degree of resilience against local events, such as flooding, it is less effective against larger regional conflicts or natural disasters. For example, a staff shortage may affect only one supplier, but a severe weather event could affect all suppliers in the region.
Multishoring, on the other hand, expands the geographic pool of suppliers and takes supply chain resiliency to the next level. However, it requires more complex logistics planning and supply chain management than multisourcing. For example, the recent supply chain disruptions have led many businesses across multiple industries to adopt a “China Plus One” strategy. This means they simultaneously source components and other resources from China and one additional country, such as Mexico or India.
We’re seeing this firsthand as more and more companies turn to us to for their complex supply chain management needs. As a Lead Logistics Partner, we leverage our expertise to oversee entire supply chains and provide end-to-end inbound-to-manufacturing solutions.