When a key supplier falters, production stops, deadlines slip, and costs spike. But some manufacturers have figured out how to keep their lines running smoothly, no matter what happens upstream. This guide shares seven practical strategies to help you stay ahead, protect your business, and keep customers happy.
Smart manufacturers don’t wait for a crisis to hit. They prepare. You’ll discover ways to reduce risk, spot problems early, and adapt quickly—using tactics you can start applying right away.
In today’s unpredictable world, supply chain disruptions have become a fact of life for manufacturers. The question isn’t if you’ll face one, but how well you handle it when it arrives. Here’s the first and most important step: don’t rely on just one supplier for your critical parts.
1. Stop Betting Everything on One Supplier—Use Dual or Multi-Sourcing
Imagine this: your main supplier suddenly can’t deliver a vital component because of a factory fire, transportation strike, or raw material shortage. What happens to your production line? It grinds to a halt, orders get delayed, and your customers start losing faith. That’s a risk no manufacturer can afford.
Relying on a single supplier is like putting all your eggs in one basket. The smart move? Spread that risk across two or more suppliers—dual-sourcing or multi-sourcing. This approach isn’t just about having backups on paper. It means having multiple suppliers who are actually ready to supply, tested, and trusted.
Let’s say you make hydraulic pumps, and one supplier provides a specific valve. By splitting orders between two suppliers—say 70% to your primary and 30% to a secondary—you keep your main supplier’s volume high enough to keep costs down but maintain a reliable fallback. When one supplier hits a snag, the other steps up without missing a beat.
Here’s a key insight many businesses overlook: simply having backup suppliers isn’t enough. You need to keep them “warmed up.” That means giving them small, regular orders so they stay ready and don’t lose capacity or interest. Think of it like keeping a spare tire inflated and ready before you need it.
This approach also gives you leverage in negotiations. If your suppliers know you have alternatives, you’re more likely to get better terms and faster service. Plus, spreading your sourcing reduces your vulnerability to regional issues, like natural disasters or transportation bottlenecks, that might impact one supplier’s location but not the other’s.
Some manufacturers worry about complexity or higher costs with multi-sourcing. But the cost of disruption far outweighs any premium you pay for having options. The goal isn’t to split everything evenly or micromanage every order—start with your most critical components, and grow from there. That’s where you’ll get the biggest impact.
If you don’t already have a dual-sourcing plan, start by mapping your supply chain and identifying components or materials that would stop production if delayed. These are your priority candidates for dual or multi-sourcing. Then reach out to potential alternative suppliers, even if just to gather info and keep conversations open.
Taking this step is one of the easiest, most effective ways to keep your manufacturing floor moving when supply chain issues hit. And that peace of mind? Priceless.
2. See It Before It Hits—Invest in Real-Time Supply Chain Visibility
Waiting until a shipment is late to find out about a problem is like discovering your car’s engine is overheating only when it’s smoking. You want to catch issues early, before they turn into costly downtime. That’s where real-time supply chain visibility tools come in. These tools track orders, shipments, and supplier performance across your entire supply chain and deliver alerts when something’s off.
You don’t need to invest in complex, expensive systems to start seeing benefits. Even simple cloud-based dashboards can give you insight into key indicators: Are suppliers consistently late? Are shipments stuck at customs? Is a port congested? This early warning system lets you act fast—reroute shipments, adjust production schedules, or push suppliers to prioritize your orders.
For example, consider a mid-sized parts manufacturer who started using a simple tracking tool that flagged repeated late deliveries from a key supplier. With that data, they negotiated better terms and shifted some orders to a backup supplier before production slowed. Early visibility turned a potential crisis into a manageable hiccup.
The insight here is to treat visibility as your supply chain’s health monitor. The more transparent your supply chain, the less you’re left guessing—and the more control you have.
3. Hold Just Enough—Build Buffer Inventory for High-Risk Components
There’s a balance to strike between just-in-time inventory, which saves money but leaves you vulnerable, and stockpiling, which ties up cash and space. The best manufacturers focus their buffer inventory on components with long lead times, single-source suppliers, or high disruption risk.
Think about it this way: if a particular bolt or sensor regularly takes 8 weeks to arrive, keeping a few weeks’ worth on hand means your line keeps running even if deliveries pause. This isn’t hoarding—it’s strategic cushioning that buys you time to react.
A hypothetical example: a machinery company identified a specialty bearing with frequent shipping delays. They decided to hold six weeks’ worth of inventory for that bearing, while keeping other parts on leaner levels. When overseas shipments stalled, their production stayed on track, avoiding costly shutdowns.
The key takeaway: use data to prioritize. Not every item needs a buffer, but those critical few that could halt production deserve extra attention.
4. Get Closer to Your Suppliers—Strengthen Relationships and Contracts
Strong supplier relationships are your frontline defense against disruptions. When you treat suppliers as partners, you gain better communication, faster problem-solving, and more reliable service.
Regular, honest conversations help you understand their challenges and give them a stake in your success. This means scheduling quarterly reviews, sharing forecasts, and working together on contingency plans—not just pushing for the lowest price.
For instance, a manufacturer of industrial valves began meeting quarterly with its top three suppliers. These meetings uncovered potential risks early, like raw material shortages or capacity limits, allowing the company to adjust orders proactively and avoid surprises.
Also, consider contract terms that incentivize performance and flexibility, such as penalties for late deliveries or options for expedited shipping at fair rates. Building trust and clear expectations pays dividends when disruptions threaten.
5. Let the Machines Predict It—Use AI to Forecast Delays and Optimize Orders
Artificial Intelligence (AI) is no longer science fiction—it’s a practical tool to foresee supply chain issues before they hit. AI algorithms analyze mountains of data: supplier histories, shipping patterns, weather forecasts, geopolitical news, and more to predict where delays might occur.
Imagine having a system that flags a supplier’s risk of delay two weeks before the problem appears, giving you time to reorder, find alternatives, or adjust schedules. Many off-the-shelf AI tools now integrate with existing systems, making this technology accessible even to smaller manufacturers.
A hypothetical case: a precision parts manufacturer implemented AI-driven forecasting. The system predicted shipment delays linked to increased port congestion and alerted procurement teams. Acting on this, they expedited orders ahead of schedule, avoiding last-minute rush costs and production pauses.
This technology gives you a powerful edge in staying ahead of the curve rather than reacting after disruption.
6. Bring It Closer to Home—Nearshoring and Reshoring Critical Suppliers
Global supply chains are vulnerable to many shocks—from trade wars to pandemics. Nearshoring (moving suppliers closer regionally) or reshoring (bringing suppliers back home) reduces these risks by shortening lead times and improving oversight.
This doesn’t mean uprooting your entire supply chain overnight. Start by identifying components with chronic delays, high shipping costs, or geopolitical risk. Then explore suppliers in closer time zones or domestic regions.
For example, a metal fabrication business reshored 20% of its custom part production to a nearby state. While costs per part were slightly higher, delivery times dropped from 5 weeks to 5 days, and the company gained greater control and flexibility.
Nearshoring can also support your sustainability goals by reducing carbon footprints, which can become a competitive advantage.
7. Stay Flexible—Cross-Train Teams to Pivot Production Fast
Even the best supply chain strategies can’t eliminate disruptions entirely. The difference comes down to how fast your team can respond when the unexpected happens. Cross-training employees to handle multiple roles means you can shift production, reallocate resources, or adjust workflows without losing momentum.
Cross-training doesn’t have to be complicated. Focus on key adjacent tasks. For example, train machine operators to handle secondary assembly or quality checks. This flexibility means when certain parts or materials are delayed, your team can switch to alternate products or processes, keeping cash flow and productivity alive.
A hypothetical scenario: a plastics manufacturer trained their staff across several machines and assembly tasks. When a shipment of raw material was delayed, they shifted focus to finishing and shipping existing inventory, avoiding downtime and keeping customer orders on track.
Investing in your team’s versatility pays off when every minute counts.
Clear Takeaways You Can Start Using Tomorrow
- Spread your risk: Identify your most critical components and start dual- or multi-sourcing to avoid production stops.
- Get ahead of problems: Use even simple visibility tools or AI forecasts to spot supplier delays before they disrupt you.
- Build resilience through relationships and flexibility: Strengthen supplier partnerships and train your team to adapt quickly when supply chains wobble.
Your Questions Answered: Top 5 FAQs About Avoiding Supply Chain Disruptions
Q1: How do I identify which parts to dual-source or build buffer inventory for?
Focus on components critical to production that have long lead times, few suppliers, or past history of delays. Look at your downtime cost per component—those with the highest impact should be your priority.
Q2: Will having multiple suppliers increase costs significantly?
There might be a small premium, but it’s outweighed by the cost of production stoppages, expedited shipping, or lost customers. Plus, maintaining competition among suppliers can keep prices reasonable.
Q3: What’s the simplest way to start improving supply chain visibility?
Start by tracking your key suppliers’ delivery performance and lead times manually or with basic cloud tools. Establish communication routines and use alerts to catch early signs of trouble.
Q4: Can AI tools be used by smaller manufacturers without big budgets?
Yes. Many AI-powered procurement tools are designed for smaller businesses and integrate with existing ERP or inventory systems. They can provide high ROI by reducing emergency orders and downtime.
Q5: How do I convince my team to invest time in cross-training?
Show how cross-training increases job security and skill development. Tie it to business continuity so everyone understands its importance—not just as “extra work,” but as a key to keeping the business running.
Your supply chain isn’t perfect—but with these proven strategies, you can make it tough for disruptions to derail your business. Start by picking one or two tactics that fit your current situation and build from there. Taking small, confident steps today means more control and less stress tomorrow. Ready to keep your production moving no matter what? Let’s get started.