Insight · Supply chain

One Supplier Can Stop a Whole Company

By Eyal Yavets · 2 min read · לקריאה בעברית

Title card: One supplier can stop a whole company.

In almost every move from R&D to production I have led, there was at least one point where a single component, from a single supplier, set the schedule for the whole company. Sometimes it showed up early. Sometimes only when the customer was already waiting.

Depending on a single supplier is not always a mistake. Sometimes there is no alternative, or the alternative costs too much. The problem starts when the dependence is not identified, not managed, and not on the leadership’s table.

What works in practice: identify the critical components early, check for each one the lead time and what happens if the supplier stops, and decide deliberately where to hold stock, where to qualify a second source, and where to redesign.

A resilient supply chain isn’t built on the day something breaks. It is built at the design stage, while change is still cheap.

Supply chain resilience is part of our Industrial & Programs practice.

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This article reflects the author’s personal opinion only. It is general information, not professional advice or a recommendation to take any action, and any use of it is the reader’s sole responsibility.