May 2022 Volume 4

OPERATIONS & MANAGEMENT

company later in my career, near-shore and off-shore sourcing were necessary to maintain our competitiveness in a critical business segment. On-shore, near-shore and off-shore suppliers co-existed in the supply base by design – and domestic suppliers were used to anchor the riskier near and off-shore supply lines. Anchoring was done contractually with the U.S. suppliers, ether splitting volumes or in exchange for maintaining a given business level, reserve capacity (and tooling if required) for fully off-shored parts were held by the on-shore source in the case of potential interruptions. As with any engine, constant exercise was necessary –extreme practice – to test the system. Does it seem complex; complicated? It may, but the word to apply is rigorous - with a high level of communication - to avoid surprises across the supplier chain. All this rests on the understanding between business partners that geopolitical pressures could interrupt the norm from time to time. But all have faith that the relationship will survive over time. Managing a supply chain that extends around the globe requires dedication to forecasting, prediction, careful projection of pressures ebbing and building in terms of tariffs, transportation trends, raw material volatility – then pulling the levers designed into the system to avoid interruption. As I read the many articles published daily on the current supply chain crisis, one can see that the reasons one company or another pursued a near-shore or off-shore originally may have been flawed.

Correction to a supply model that is predominantly or primarily on-shore is understandable. But it is not a panacea for all sourcing organizations. Global sourcing is not at an end. But sophistication on how to design a supply chain model is growing in importance. It is where your buying team can become an even more significant competitive advantage to your company. Vic Venettozzi Vice President &General Manager Consolidated Industries, Inc. Email: Vvenettozzi@consolindustries.com Phone: 203-272-5371 x 273

FIA MAGAZINE | MAY 2022 47