Root Cause & Solution
The immediate action was for the Supply Chain lead to contact the dominant competitors asking if they will release some of the material allocated to them, understanding the catastrophic impact of no raw material they released product.
ASM was engaged to do a detailed post-mortem of the situation, using their online assessment they rapidly identified no formal assessment had been performed to determine any single point of failure (SPOF) within the supply base. In addition, the supply contract was weak in that there was no clause to ensure supply or a pro-rata in the case of restricted supply.
ASM facilitated a three-way agreement with the supplier and other users of the product to address the SPOF and allocation of supply in such serious supply restrictions. In addition, ASM performed a detailed analysis of the supply base to identify other risks and remedial action was taken.