Buyers stick with suppliers through shortages

2 January 2013

Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily

2 January 2013 | Adam Leach

Almost a third of buyers are willing to stick with suppliers and work with them to try and prevent future issues when there are supply shortages.

The 2013 Manufacturing Outlook, published by ASQ, found that when impacted by a supplier running out of inventory, just over 30 per cent choose to work with them to resolve the issue. Some 25 per cent will look to source from one of their competitors.

The global survey of 1,250 manufacturing professionals also found just 33 per cent expect a shortage of parts as a result of a supplier in 2013.

Commenting on the findings, Dick Gould, ASQ fellow and supplier management trainer, said: “Any shortage of parts or services can have a dramatic effect on a manufacturer so it’s important for companies to communicate openly with suppliers to avoid any disruption in production. Conversely, it’s important for suppliers to work with manufacturers to provide them with the quality parts or services to ensure a long-term relationship.”

Asked about past performance, 80 per cent of respondents said they had suffered as a result of a supplier’s inability to meet their commitments. The majority of respondents, 81 per cent, said they had a favourable view of the quality of parts they are supplied with, 80 per cent said they were satisfied with the availability of supplies. But satisfaction fell to 67 per cent when it came to the price.

GBP300 - GBP400 per day +
1st Executive
City of London
GBP400 - GBP500 per day +
1st Executive
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates