There are a number of very real threats to every company’s supply chain, like a natural disaster, or a major facility accident. Today, the number and types of threats that can undermine a supply chain are greater than ever, and the reason redundancy has taken on even more importance in supply chain management.
Of course, there’s no way to prevent disruptive or catastrophic events from occurring, but a company can take smart steps to prepare for and deal with them – to ensure business continuity. When it comes to the supply chain, the best way to ensure your company’s ability to quickly get back up and running is to institute redundancies in the supply chain.
Redundancy Is Critical To Lean
Redundancy at first seems counterproductive to a company’s Lean efforts, where the focus is driving out all waste and an efficient JIT flow of goods. But, in fact, redundancy is one of the best ways to ensure Lean operations because redundancy is designed to help facilities avoid the significant waste of time, effort and money involved in a system breakdown.
Redundancies throughout the supply chain help to:

  • Support any weak spots in the supply chain
  • Prevent slowdowns or shutdowns
  • Provide safety stock in case of delivery failures
  • Ensure competition, availability, and quality when redundancy of suppliers is implemented
It’s not enough for companies to put effort only into mitigating today’s risks. In 2022 and beyond, companies must implement redundancies to deal with an incident if they hope to stay competitive. With the number and severity of crises that have occurred around the globe over the past few years, more and more companies are building redundancy into their supply chains.
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