October 4, 2024 Build a Bulletproof Supply Chain With These Strategies

Learn how savvy manufacturers stay ahead in a world of constant disruption.

By Dayna Badhorn, President, Avnet Americas

These days, your business is only as strong as your supply chain.

All types of events—from natural disasters to political upheavals—can wreak havoc on supply chains. That’s why embedding redundancy, transparency and security into your supply chain operations is a priority.

Enter the trusted distribution partner, the unsung hero straddling the divide between suppliers and end customers. These partners possess invaluable insights into customer needs, which can be relayed upstream to suppliers, creating a transparent flow of information.

Suppliers and end customers alike should focus on a distribution partner that masters the entire supply chain process. This partner should pinpoint key components and execute rapid responses when necessary. Key capabilities include a distributor’s ability to juggle “just-in-time” with “just-in-case” inventory strategies, their keen understanding of design choices, and their knack for verifying the validity and application of components.

Expose supply chain weak spots

Mapping out a resilient supply chain begins with recognizing the myriad risks lurking in the shadows. Recent disruptions have laid bare the vulnerabilities within global supply chains:

• Turkey’s earthquake: Twin seismic jolts that struck near the country’s southern border in early 2023. More than 16% of the country’s population was affected.
• Wildfires across the U.S. West: At least 88 wildfires raged across Colorado, California and other western states in the summer of 2024, causing widespread evacuations, infrastructure damage and poor air quality in much of the Midwest.
• Protests and political chaos: Increasingly frequent protests disrupt major transportation hubs, highways and ports, compounded by ongoing political turmoil in Europe.
• Baltimore’s Francis Scott Key Bridge collapse: The bridge’s collapse on March 26, following a cargo ship collision underscored infrastructure fragility.
• Suez Canal blockage: The 2021 obstruction by the Ever Given container ship highlighted the delicate nature of crucial supply routes.

In an era where technology’s commoditization makes it tough for companies to stand out, supply chain and operations have emerged as critical differentiators. A cutting-edge supply chain strategy optimizes the flow of products, information and finances among trading partners.

Companies must ally with partners that boast deep expertise, a global reach, advanced digital infrastructure, and a broad spectrum of services to craft and execute strategic supply chain models. These models need to offer customers end-to-end connectivity, alignment, and agility to deliver breakthrough products and enriched experiences demanded by today’s markets.

Power moves to fortify your supply chain

From fulfillment and inventory management programs to sophisticated supply chain-as-a-service models, the right partner is essential. This partner will collaborate with you to identify your needs and priorities, applying models that capture the unique value created in your product design as it journeys to market. While semiconductor chips are the new battleground for market differentiation, the supply chain determines whether this differentiating value is fully realized from concept to market.

Believe it or not, your supply chain is under threat every single day. From natural calamities to political unrest, infrastructure failures and labor shortages, having visibility into your supply chain’s ebb and flow is important.

Here are three critical moves the right partner can help you make to fortify your supply chain:

1. Start with strong design choices. Pick the right suppliers and understand the lifecycle of the components you use so you are less vulnerable to parts shortages.
2. Know where your suppliers’ suppliers come from. Where are the parts you need really being built? Also, understand where suppliers are investing in manufacturing, who is building new fabs, and what’s the older tech vs. newer tech.
3. Stay connected to all your suppliers so you can see where your parts are. Understand which parts are the most critical to your end product and stay connected to those partners. Also, understand who else uses what you use. With artificial intelligence (AI), graphic processors and high bandwidth memory are in high demand. If your product also uses these, remember that you are now competing for those parts against new AI device makers. Track your contract manufacturers so it all comes together seamlessly.

Crafting a bulletproof supply chain requires planning, strategic partnerships and a deep comprehension of potential risks. By adopting these strategies, manufacturing leaders can weather disruptions and ensure their supply chains remain robust and responsive in an increasingly volatile world.

Remember, your business is only as strong as your supply chain.

Dayna Badhorn is the regional president, Americas electronics components. She is a 25-year veteran of the company who has held leadership positions in a wide variety of functions, including sales, technical support, supplier management and business development.

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