How are you balancing risk and resilience in your supply chain?

I think the biggest thing to improve resilience is to actually drive the right metrics. Cost Savings is so easy to measure, but how do you measure risk? It's not nearly as intuitive. Here are a few metrics that I like: 

% of revenue / profit tied to a specific supplier
% of revenue / profit tied to a specific country of origin
% of spend that is mapped to Tier 2 or Tier 3 suppliers
% of spend with a contingency plan

There are three things we're doing to support that balance and continue to make progress in building a resilient supply chain.

First, we're participating deeper into the supply chain than ever. I am connected regularly to Tier 3 and Tier 4 suppliers. Advocating for these deep tiers of your supply chain helps create stronger relationships, which has been valuable as we solve critical challenges.

Second, we’re challenging the boundary conditions we previously put on our supply chain. Challenging why and what we're doing at each tier has been incredibly important to come up with creative solutions that do not constrain us to prior assumptions.

Last, the mission of our business is centered on the customer. We want to ask ourselves, what does the customer need? What are they willing to pay for? What are they willing to wait for? If we work deeper into the supply chain, challenge our boundary conditions, and keep making decisions that benefit the customer, we should end up in a place where our supply chain is better managed through risk. We’ll know what those risks are and be more agile in navigating them.