Dynamic Technology Solutions Calls for Changes in Supplier Relationships to Address Long -Term Supply Chain Problems
Companies Should Require Product and Component Suppliers to Have Skin in the Game, To help Identify, Avoid and Manage Supply Chain Risks
FARMINGTON HILLS, Mich., Oct. 13, 2021 /PRNewswire/ -- Dynamic Technology Solutions — a leading provider of supply chain-related services — said today that a major catalyst for the nation's current supply chain problems is the lack of communication and transparency between manufacturers and their supply sources. The company believes that many of the operational challenges faced by companies today, including relationships with suppliers, have been magnified by the pandemic and were not caused by it.
In her recent Harvard Business Review article, "How to Build a Transparent Relationship with Your Suppliers," Dynamic's CEO and President, Farida Ali, said that "even in the absence of black swan events, manufacturers will continue to be at risk until they establish new ways to work with suppliers that ensure full transparency regarding the sources, availability, and life cycles of their mission-critical products and components."
According to Ms. Ali, Dynamic's 40 years of supply chain experience suggests that "companies rarely share risk-related concerns with their suppliers, may not even know where their suppliers should look for risk, and are often more concerned with penalties for – rather than the root causes of – missed delivery deadlines."
Ms. Ali said, "Companies must expect all suppliers to have skin in the game and require them to identify and keep them informed of potential risks." Her article offers steps that companies should take to change the underlying dynamics with their suppliers, including:
- Communicate a strong sense of purpose to ensure that your suppliers know supply chain risk management is a priority.
- Work with suppliers to establish a formal system that identifies supply chain risks in advance of a problem based on transparency and accountability.
- Consult with your suppliers at the product design and specification stages so that supply chain resiliency can be established at the outset.
- Manage supplier pushback by demonstrating a willingness to establish deeper, long-term relationships in exchange for true risk-management partnerships.
- Maintain a rigorous, data-driven internal process for evaluating all supply chain risks and a risk mitigation protocol that's endorsed and monitored by senior management.
In her article, Ms. Ali also said, "As the global supply chain grows more interconnected and complex, the impact of climate change expands, and geopolitical tensions and trade restrictions increase, the likelihood of disruptions is bound to increase. Companies must plan accordingly. Those plans should include revamping how you select and work with suppliers to ensure greater transparency, sharing of risk, and supply chain sustainability."
About Dynamic Technology Solutions:
Established in 1979, Dynamic is recognized as the leader in sourcing, testing, configuration and End-of-Life transitions for electronic technology within highly regulated industries, notably for Life Sciences and Medical Device companies. Dynamic delivers asset and lifecycle management services as an integrated solution that is compliant, consistent and controlled. Dynamic is ISO 9001 and ISO 13485 certified. As a benchmarked member of the Diverse Manufacturing Supply Chain Alliance (DMSCA), Dynamic has a strong commitment to diversity, and to maintaining high On-Time, In-Full (OTIF) and Right First Time (RFT) scores. Dynamic Technology Solutions is the trade name and a registered service mark of Dynamic Computer Corporation. Visit www.DynamicTech.Solutions.
Media Contact:
Gordon G. Andrew
Highlander Consulting Inc.
[email protected]
(609) 987-0200
SOURCE Dynamic Technology Solutions
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