Root Cause & Solution
On investigation, by Purchasing, it was discovered the material was sourced by the distributor from a dominant European chemical manufacturer. It was made in a single factory based in China that had suffered a major explosion and fire virtually destroying the plant, hence the six-month lead time. The manufacturer had no other source and told customers to find an alternative or wait. The Purchasing team reacted and were able to source an alternative but only after an intense and costly program of re-validation and customer verification.
ASM was engaged to support the business, an immediate solution was to increase safety stocks, identify alternative products and contracted a stocking program with the supplier. Using their online assessment platform ASM identified several other areas of potential supply interruption and measures were implemented to mitigate these risks.