“We live in unprecedented times” is a phrase used so often in the past few months that it has become a cliché. Nevertheless, the sentiment is true. The threat of tariffs on exports to the United States has Canadian companies scrambling to find new customers in other parts of the world. Although the risk to sales and exports may be the first thought when considering the potential impact of US tariffs, the risk to the supply of industrial goods is equally serious. Reciprocal Canadian tariffs on imports from the United States will increase input costs, complicate clearance and extend lead times.
Mitigating the risk to your supply chain is an important step to ensure your business will survive and thrive. Developing the risk mitigation plan before the situation deteriorates will protect your business and support your customers.
Three steps to understand your risks and ensure continuation of raw material supply:
1. Conduct Supply Chain Gap Analysis
· Identify Single-sourced material
· Identify country of origin for key material (not necessary where it is sourced)
2. Develop Supply Chain Risk Mitigation Plan
· Actions required to obtain (perhaps unique) material from different sources
· Research suppliers with the right capabilities
3. Implement Supply Chain Tactical Action Plan
· Engage suppliers with the right capabilities
· Sample buys to confirm capabilities
· Activate the plan quickly, before supply interruptions create bigger problems
Contact C-Level Executive Solutions for assistance to proactively identify ways to reduce supply chain risk.
C-Level Executive Solutions will use a data driven, straight-forward approach to identify the risks in your supply chain and develop mitigation plans to reduce the impact of supply chain interruptions on your business.
Valerie Welsh, MBA
Supply Chain Executive
C-Level Executive Solutions
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