Control what you can. Plan for the unexpected.

November 30, 2021
By Blue Print Editorial Team

Over the past half century, we've witnessed the rise of a 'world economy' interconnected by complex global supply chains. Over the past three years, we've discovered how tenuous and out of sync those connections can become. From steel to semiconductors, from tariffs to transportation bottlenecks, global supply chain disruptions have dominated business headlines and affected virtually every industry.

Where does that leave us today?
One silver lining is that businesses have become better at recognizing the warning signs of supply chain stress. Things that might have raised an eyebrow in the past now raise a frantically-waving red flag. That’s important because the sooner we can spot the signals, the sooner we can take action to get ahead of the curve.
​
Warning signs

• Uncontrollable events – natural disasters, policy changes, health crises
• Production begins to feel minor effects caused by a lack of essential products
• The procurement team has to act quickly to identify alternate manufacturers
• Suppliers retool or outsource production
• Counterfeit products enter into the marketplace

It’s not about reacting to these signs; it’s about executing a proactive plan. That brings us to another silver lining: More and more businesses now recognize the importance of developing procedures and contingency plans surrounding critical supply needs. A good maxim to follow is "control what you can and plan for the unexpected." By introducing controls like those listed below, you can take steps to protect parts critical to production and mitigate the impact of uncontrollable events.

Five steps to limit risk

1. Identify products and services that are critical to your operation
2. Document a plan for each part in the event of a disruption
3. Define acceptable alternatives (Option A, Option B, and Option C)
4. Take action and practice the scenario
5. Communicate, communicate, communicate – before, during, and after disruption events

The good news: You’re not alone in this. To secure our shared supply chain, Fastenal has hundreds of dedicated professionals working around the globe in the areas of sourcing, compliance, quality, and logistics. Below are some of the structures and safeguards we’ve put in place to keep critical supplies flowing in a quickly changing world.

How Fastenal secures your supply chain

• A dedicated commodity intelligence team analyzes the global economy and financial markets daily to prepare for future trends
• Internationally-based sourcing and QC operations establish agility and control early in the supply chain
• Active testing and monitoring of material/product quality ensures internationally recognized standards are hit
• An established process is used to allocate scarce goods to existing customers (vs. selling to the general market)
• Local relationships are developed to assist you with planning and to help provide creative solutions

Vertical Divider

How can we help you prepare for the next disruption?

How can we prepare our own systems to reduce risk for your business?

​Reach out to your Fastenal representative to make a plan.
​

Like what you're seeing here? Subscribe to the Blue Print for FREE and get the magazine sent right to your address.

Subscribe

​Got feedback? Email us at
[email protected]