SUPPLY CHAIN RISK: SUPPLIERS VS COMPANY
For companies that manufacture products mostly use suppliers, and over a period of time, they have become extremely dependent on them. So should the supply chain depends on the outsourcing suppliers? Most companies have many suppliers as to derisk their investment and ensuring backup if one supplier goofs up
However, there exist a divided opinion on ultimately who is responsible for " supply chain. Are the suppliers more accountable for the supply chain risk, or is it the supply chain teams of the company more responsible for " ensuring vendors and suppliers" deliver in the right number and the right time
According to The Ripple Effect, a recent survey conducted by Deloitte Consulting LLP, 63% of executives see external suppliers as one of the biggest sources of today’s supply chain concerns. And when problems do arise, it’s the company—not suppliers—that will likely bear the brunt of the blame. What’s more, even having a diversified portfolio of suppliers is no guarantee when it comes to managing the supply chain.
For example, when Japan was hit by a tsunami in 2011, most companies thought their supply chains were safe because they had multiple suppliers as backups. As it turned out, many of those suppliers relied on the same secondary suppliers, causing the entire supply pyramid to collapse.
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