A firm experiences a supply chain interruption from a second-tier supplier.

To minimize future supply chain interruptions from a second-tier supplier, the firm should map the supplier's supply chain to identify risks and opportunities. This involves:

Supply Chain Mapping: Creating a visual representation of the supplier’s supply chain helps in understanding the flow of materials, components, and information.

Identifying Risks: By mapping the supply chain, the firm can identify potential points of failure, such as single-source dependencies, geographic risks, or capacity constraints.

Assessing Opportunities: Mapping also reveals opportunities for improvement, such as alternative suppliers, process enhancements, or inventory optimization.

Proactive Risk Management: With a comprehensive view of the supply chain, the firm can develop risk mitigation strategies, such as diversifying suppliers, increasing safety stock, or enhancing communication channels.

References

"The Supply Chain Risk Management Guide" by James B. Rice Jr. and Craig A. Zsidisin

APICS, "Risk Management in the Supply Chain"