How Small Manufacturers Can Develop Risk Management Strategies for their Supply Chains

As a smaller manufacturer, you continue to be more vulnerable to global supply chain disruptions than larger companies. Having to pay more for materials, parts or shipping is a difficult dynamic as you may not be able to absorb short-term losses or even a lower margin. But cost becomes less important if you can’t deliver a product, and as uncertainty has been magnified, it is now essential for you to manage risk by preparing for and adapting to unexpected disruptions in order to increase your resilience and be responsive to customers.

In many ways the disruptions show how small manufacturers are more critical than ever. Many big companies are looking for additional domestic sourcing and do not want to take on additional liabilities and capital investments from bringing more in-house. Those companies also are looking for trusted relationships in their supply chains that will work with them to provide added value from sustainable solutions and even product development.

Risk management is key.