How Can Leaders Mitigate Risks in Material Sourcing?
Risk mitigation is crucial in material sourcing. Here are strategies leaders can employ:
Diversification: Avoid relying on a single supplier or geographic region. Contracts and Agreements: Clearly define terms and conditions, including penalties for non-compliance. Regular Monitoring: Continuously monitor supplier performance and market conditions. Contingency Planning: Develop contingency plans to address potential disruptions.