What are some case studies on supplier dependency?

What are some case studies on supplier dependency?

Supplier dependency refers to a situation where a company relies heavily on one or a few suppliers for critical components. Some notable case studies include the automotive industry, where manufacturers faced disruptions due to reliance on specific parts suppliers, and the tech industry, where companies like Apple have had to manage risks associated with their suppliers in Asia.

Can you give me a specific example from the automotive industry?

Sure! A well-known case is the 2011 earthquake and tsunami in Japan, which severely impacted Toyota's supply chain. The company relied on a limited number of suppliers for key components, leading to production halts and significant financial losses.

What strategies can companies use to mitigate supplier dependency?

Companies can diversify their supplier base, develop strategic partnerships, invest in local suppliers, and maintain safety stock to mitigate risks associated with supplier dependency.

Are there any recent trends in managing supplier relationships?

Yes, recent trends include increased use of technology for supply chain visibility, collaborative planning with suppliers, and a focus on sustainability and ethical sourcing.